Question

Newhard Company assigns overhead cost to jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost. A total of 1,000 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?

Answer 1

Answer:

A) manufacturing costs= $37,000

B) Unitary cost= $37

Explanation:

Giving the following information:

Newhard Company assigns overhead costs to jobs based on 125% of direct labor cost.

The job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost.

A total of 1,000 units were produced in Job 313.

A) manufacturing costs= direct materials + direct labor + manufacturing overhead

manufacturing costs= 10000 + 12000 + (12000*1.25)= $37,000

B) Unitary cost= 37000/1000= $37