Question

Check Exercise 2-8 Applying Overhead Cost; Computing Unit Product Cost (LO2-2, LO2-3) Newhard Company assigns overhead cost to jobs on the basis of 116% of direct labor cost. The job cost sheet for Job 313 includes $31,786 in direct materials cost and $10,400 in direct labor cost. A total of 1750 units were produced in Job 313 Required: a. What is the total manufacturing cost assigned to Job 313? b. What is the unit product cost for Job 313? a. Total manufacturing cost b. Unit product cost

Answer 1

a).
Overhead cost = Percentage x Direct labor cost
Overhead cost =	116% x $10,400 =	12064.00
Direct Material Cost =		31786.00
Direct Labor Cost =		10400.00
Total Manufacturing cost assigned	=	$ 54250.00
b).
Unit Product Cost
Total Manufacturing cost assigned		$ 54250.00
Units		1750.00
Unit Product Cost =	54250/1750	$ 31