Question

Exercise 2-3 Computing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate [L02-3] Mickley Company's plantwide predetermined overhead rate is $19.00 per direct labor-hour and its direct labor wage rate is $14.00 per hour. The following information pertains to Job A-500: Direct materials 280 Direct labor $ 280 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 940 per unit

Answer 1

1. Total direct labor hours = Direct labor cost / Direct labor wage rate per hour = $280 / $14.00 = 20

Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead applied

Total manufacturing cost = $280 + $280 + ($19 per DLH × 20 DLHs)

Total manufacturing cost = $940

2. Unit product cost = Total manufacturing cost / Number of units in the job = $940 / 40 units = $23.50 per unit