Newhard Company assigns overhead cost to jobs on the basis of 118% of direct labor cost. The job cost sheet for Job 313 includes $17,870 in direct materials cost and $11,000 in direct labor cost. A total of 1,550 units were produced in Job 313. Required:
What is the total manufacturing cost assigned to Job 313? What is the unit product cost for Job 313?

A. Manufacturing costs =$41,850

B. Unitary cost = $27

Explanation:

Given the following information,

Newhard company assigns overhead costs to jobs based on 118% of direct labor cost

The Job cost sheet for job 313 includes $17,870 in direct materials cost and $11,000 in direct labor cost

A. Manufacturing costs = Direct materials + Direct labor + Manufacturing overhead

= $17,870 + $11,000 + ($11,000 × 1.18%))

= $17,870 + $11,000 + $12,980

= $41,850

B. Unitary cost = $41,850 / 1,550

Unitary cost = $27

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