Exercise 2-10 Applying Overhead; Computing Unit Product Cost [LO2, LO3] A compan

Question

Exercise 2-10 Applying Overhead; Computing Unit Product Cost [LO2, LO3]

A company assigns overhead cost to completed jobs on the basis of 110% of direct labor cost. The job cost sheet for Job 413 shows that $29,910 in direct materials has been used on the job and that $10,900 in direct labor cost has been incurred. A total of 1,600 units were produced in Job 413.

A company assigns overhead cost to completed jobs on the basis of 110% of direct labor cost. The job cost sheet for Job 413 shows that $29,910 in direct materials has been used on the job and that $10,900 in direct labor cost has been incurred. A total of 1,600 units were produced in Job 413.

Explanation / Answer

Overhead Cost = 110% of Direct Cost = 1.1*10900 = $11990

A
Total Manufacturing Cost = Direct Cost + O/H Cost + Direct Materials used
= 10900 + 11990 + 29910 = $52800

B
Unit product cost = Total Manufacturing Cost / No of units
= 52800 / 1600 = $33/unit

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.