Question

Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500:

Direct materials	$	260
Direct labor	$	75

Required:

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

2. If Job A-500 consists of 60 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

1)
	Number of direct labor hours = $75/15 =5 hours
	total manufacturing cost assigned to Job A-500
	Direct Materials	$        260
	Direct Labor	$          75
	Overhead Cost	$        100
	Total	$        435
2_	Unit cost = Total job cost/number of units per job
	=$435/60
	=$7.25 per unit