Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost.

Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes $17,925 in direct materials cost and $10,500 in direct labor cost. A total of 1,350 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?



Explanation

a. & b.

Direct material	$	17,925
Direct labor		10,500
Manufacturing overhead applied: $10,500 × 115%		12,075
Total manufacturing cost	$	40,500
Total manufacturing cost (a)	$	40,500
Number of units in job (b)		1,350
Unit product cost (a) ÷ (b)	$	30