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.

Answer 1

The overhead cost assigned to Job 313 can be calculated by multiplying the direct labor cost by 125%:

Overhead cost = $12,000 * 125% = $12,000 * 1.25 = $15,000

The total cost of Job 313 can be calculated by adding the direct materials cost, direct labor cost, and overhead cost:

Total cost = $10,000 + $12,000 + $15,000 = $37,000

The cost per unit can be calculated by dividing the total cost by the number of units produced:

Cost per unit = $37,000 / 1,000 units = $37 per unit