Question

Exercise 2-3 (Algo) Computing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate [LO2-3) Mickley Company's plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct laborwage rate is $13.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor $ 270 $ 195 ces 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.) 1. Total manufacturing cost 2. Unit product cost per unit

Answer 1

Direct labour hour =Total Direct labour cost/rate

=195/13

=15 Hours

1.

Total manufacturing cost
Direct material	270
Direct Labour	195
Overhead ($23*15 Hours)	345
Total manufacturing Cost	810

2. Unit product cost= Total Cost/ Number of units

=810/60

=13.50 per Unit

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