Question

Mickley Companys plantwide predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $13
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Answer #1

Answer:

1. Total manufacturing cost $725
2. Unit product cost $12.08 per unit

Explanation:

Actual direct labor hours = Actual direct labor cost / Direct labor hour per hour.

= $195 / $13 per hr. = 15 direct labor hours.

Manufacturing overhead applied = Actual direct labor hours * Predetermined overhead rate

= 15 direct labor hours * $18 = $270

Total manufacturing cost = Direct material cost + Direct labor cost + Manufacturing overhead applied

= $260 + $195 + $270 = $725.

Unit product cost = Total manufacturing cost / Number of units

= $725 / 60 units = $12.08

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