Question

exercise 2-9 (static) applying overhead cost; computing unit product cost lo2-2, lo2-3

newhard company applies overhead cost to jobs on the basis of 125% of direct labor cost. job 313 includes 1,000 units and its job cost sheet contains $10,000 in direct materials and $12,000 in direct labor.

required:
a. what is the total manufacturing cost applied to job 313?
b. what is this jobs unit product cost?

a. total manufacturing cost
b. unit product cost

Explanation:

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<reasoning>

Calculate applied manufacturing overhead

\[
\text{Applied Overhead} = \$12,000 \times 125\% = \$15,000
\]

Calculate total manufacturing cost

\[

$$\begin{aligned} \text{Total Manufacturing Cost} &= \text{Direct Materials} + \text{Direct Labor} + \text{Applied Overhead} \\ &= \$10,000 + \$12,000 + \$15,000 \\ &= \$37,000 \end{aligned}$$

\]

Calculate unit product cost

\[

$$\begin{aligned} \text{Unit Product Cost} &= \frac{\text{Total Manufacturing Cost}}{\text{Number of Units}} \\ &= \frac{\$37,000}{1,000} \\ &= \$37.00 \end{aligned}$$

\]
</reasoning>

<answer>

Question a

Total manufacturing cost: <blank>\$37,000</blank>

Question b

Unit product cost: <blank>\$37.00</blank>
</answer>

<post_analysis>
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"question_type": "Fill-in-the-blank",
"knowledge_point": [
"Business",
"Accounting",
"Job-Order Costing"
]
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Answer:

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<reasoning>

Calculate applied manufacturing overhead

\[
\text{Applied Overhead} = \$12,000 \times 125\% = \$15,000
\]

Calculate total manufacturing cost

\[

$$\begin{aligned} \text{Total Manufacturing Cost} &= \text{Direct Materials} + \text{Direct Labor} + \text{Applied Overhead} \\ &= \$10,000 + \$12,000 + \$15,000 \\ &= \$37,000 \end{aligned}$$

\]

Calculate unit product cost

\[

$$\begin{aligned} \text{Unit Product Cost} &= \frac{\text{Total Manufacturing Cost}}{\text{Number of Units}} \\ &= \frac{\$37,000}{1,000} \\ &= \$37.00 \end{aligned}$$

\]
</reasoning>

<answer>

Question a

Total manufacturing cost: <blank>\$37,000</blank>

Question b

Unit product cost: <blank>\$37.00</blank>
</answer>

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"Business",
"Accounting",
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