Question

Question 3 (of 6) value 16.66 points Mickley Company's predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The folliowing information pertains to Job A-500: Direct materials Direct labor $270 $225 Required 1. What is the total manufacturing cost assigned to Job A-500? manufacturing cost 2. If Job A-500 consists of 40 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places) per unit Hints References eBook& Resources Hint#1 Check my work

Answer 1

1.) Total manufacturing overhead assigned to job a-500:

labour hours worked = $225 / $15 = 15 hours.

overhead rate will be (15 hours * $22.00) = $330.

direct material    = $270

direct labor    = $225

Total manufacturing overhead    = $825

2.) Average unit assigned to each unit included in the job :

total manufacturing overhead / no of units i.e., ($825/40 units) = $20.625 per unit.

average cost is $20.625 per unit