Question

Mickley Company's plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor $ 231 $ 153 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost per unit

Answer 1

1 Total Manufacturing Cost 2 Unit product cost S 510 $ 12.75 per unit Working Notes: Direct labor Hours = $153/S17 = 9 Hours Manufacturing over head cost =9*$14 = $126 1 Total Manufacturing Cost Direct materials S 231 Direct Labor $ 153 Manufacturing overhead cost $ 126 Total Manufacturing Cost S 510 2 Unit Product Cost = Total manufacturing cost/production units = 5510/40 = $12.75