Question

Please explain/ show work

Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor $ 230 $ 200 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.) Total manufacturing cost 2. Unit product cost per unit

Answer 1

Predetermined overhead rate = $22 per direct labor hour

Direct labor cost = $200

Direct labor rate = $10 per hour

Direct labor hours = Direct labor cost/Direct labor rate

= 200/10

= 20

Manufacturing overheads = Direct labor hours x Predetermined overhead rate

= 20 x 22

= $440

1.

Direct materials	230
Direct labor cost	200
Manufacturing overheads	440
Total manufacturing costs	$870

2.

Unit product cost = Total manufacturing costs/Unit product cost

= 870/40

= $21.75 per unit

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