A company assigns overhead cost to completed jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 413 shows that $23,085 in direct materials has been used on the job and that $10,100 in direct labor cost has been incurred. A total of 1,400 units were produced in Job 413. Required: a. What is the total manufacturing cost assigned to Job 413? b. What is the unit product cost for Job 413?

Question

Business

Ryker

22 June, 07:16

A company assigns overhead cost to completed jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 413 shows that $23,085 in direct materials has been used on the job and that $10,100 in direct labor cost has been incurred. A total of 1,400 units were produced in Job 413. Required: a. What is the total manufacturing cost assigned to Job 413? b. What is the unit product cost for Job 413?

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April Friedman · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

A company assigns overhead costs to completed jobs based on 115% of direct labor cost.

Job 413:

Direct materials = $23,085

Direct labor = $10,100

A total of 1,400 units were produced in Job 413.

A) To calculate the total cost of Job 413, we need to use the following formula:

Total cost = total direct material + total direct labor + total overhead

TC = 23,085 + 10,100 + (10,100*1.15) = $44,800

B) The unitary cost is calculated by the division of the total cost on the number of units:

Unitary cost = total cost/Q = 44,800/1,400 = $32