Newhard Company assigns overhead cost to jobs on the basis of 114% of direct labor cost. The job cost sheet for Job 313 includes $26,530 in direct materials cost and $10,500 in direct labor cost. A total of 1,400 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?

Results are below.

Explanation:

Giving the following information:

Estimated overhead rate= 114% of direct labor cost.

Job 313:

Direct materials= $26,530

Direct labor=  10,500

Number of units= 1,400

First, we need to allocate overhead to Job 313:

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

Allocated MOH= 10,500*1.14= $11,970

Now, the total cost:

Total cost= 26,530 + 10,500 + 11,970

Total cost= $49,000

Finally, the unitary cost:

Unitary cost= 49,000 / 1,400

Unitary cost= $35

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