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Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes $15,745 in direct materials cost and $10,700 in direct labor cost. A total of 1,550 units were produced in Job 313. Required: a. What is the total manufacturing cost assigned to Job 313

Required:
What is the total manufacturing cost assigned to Job 313? What is the unit product cost for Job 313?

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Answer:

Results are below.

Explanation:

First, we need to allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.15*10,700= $12,305

Now, we can determine the total manufacturing cost:

Total manufacturing cost= 15,745 + 10,700 + 12,305

Total manufacturing cost= $38,750

Finally, the unitary cost:

Unitary cost= 38,750 / 1,550

Unitary cost= $25

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