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

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

Accepted Answer

{ "quality": "clear", "question_count": 2, "skills_matched": [ "step_cot", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [ "Overhead Application", "Product Cost vs Period Cost" ], "new_concepts": [ "Unit Product Cost Calculation" ], "current_concepts": [ "Overhead Application", "Product Cost vs Period Cost", "Unit Product Cost Calculation" ] } ## 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 $$ \begin{aligned} \text{Unit Product Cost} &= \frac{\text{Total Manufacturing Cost}}{\text{Number of Units}} \ &= \frac{\$37,000}{1,000} \ &= \$37.00 \end{aligned} $$ ## Question a Total manufacturing cost: \$37,000 ## Question b Unit product cost: \$37.00 { "subject": "Business", "question_type": "Fill-in-the-blank", "knowledge_point": [ "Business", "Accounting", "Job-Order Costing" ] }

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QUESTION IMAGE

Question

Explanation:

Calculate applied manufacturing overhead

Calculate total manufacturing cost

Calculate unit product cost

Answer:

Question a

Question b