Question

Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage...

Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-500:

Direct materials $ 240
Direct labor $ 195

Required:

1. What is the total manufacturing cost assigned to Job A-500?

2. If Job A-500 consists of 50 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

1.Total manufacturing cost2.Unit product costper unit?

2.Unit product costper unit?

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Answer #1

Answers

  • Requirement 1

A

Direct materials

$240

B

Direct Labor

$195

C = ($195 / $13) x $ 23

Overhead applied

$345

D = A+B+C

Total manufacturing cost assigned to Job

$780

Answer

  • Requirement 2

Unit product cost per unit
= $ 780 / 50 units
= $ 15.60 per unit.

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