Question

Check my won Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: 20 points Direct $240 materials Direct labor $150 eBook Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 30 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) Hint 1.Total manufacturing Print Total manufacturing cost 2. Unit product cost per unit References

Answer 1

1. Total manufacturing cost = Predetermined overhead rate x Actual Direct Labor Hours

  Actual Direct Labor Hours = Direct Labor Costs/Direct Labor Rate

= 150 / 15

= 10 hours

Therefore, Total manufacturing cost = $22 x 10 = $220

2. Unit Product Cost = (Total manufacturing cost + Direct Materials + Direct Labor) / 30 units

= ($ 220 + 240 + 150) / 30 units

= $610 / 30 units

= 20.33 per unit