Managerial accounting question

Question

A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 shows that $10,000 in direct materials has been used on the job and that $12,000 in direct labor cost has been incurred. A total of 1,000 units were produced in Job 313.

 

what is the manufacturing cost?

What is the unit product cost?

Answer 1

I concur with Bill's answer. Just i want to clarify these abbreviations for the non-cost accounting people.

DM= Direct Material

DL= Direct Labor

OH = Overhead Cost

Answer 2

DM $10,000

DL $12,000

OH (1.25 X 12,000) or $15,000

Total Cost = $37,000 (10000+12000+15000)

Unite Cost = $37 ($37,000 / 1000)