Question

Check my Mickley Company's plantwide predetermined overhead rate is $2100 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor $ 260 $ 240 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1 Total manufacturing cost 2. Unit product cost per unit

Answer 1

1. Total Manufacturing cost= $920.

*Total Manufacturing Cost= Direct Materials+Direct Labor+Overhead Cost.

Particulars	Amount
Direct Materials	$260
Direct Labor [$240/$12]= 20 hours*$12	$240
Overhead Cost [20 hours * $21]	$420
Total Manufacturing Cost	$920

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2. Unit Product Cost= $13.14 per unit.

*Unit Product Cost= Total Manufacturing Cost / Total Units;

*Unit Product Cost= $920 /70 units;

*Unit Product Cost= $13.14 per unit.

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