Mickley Company’s predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-500: |
Direct materials | $290 |
Direct labor | $195 |
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 average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.) |
1.
Direct Labor hour for Job A-500 = $195 / 13 = 15 DLHs
Overhead applied = 15 x $22 = $330
Total manufacturing cost assigned to Job A-500 = $290+195+330 = $815
2.
Average cost per unit = $815 / 60 = $13.58 per unit
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Mickley Company’s predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate...
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