Question

Mickley Company's plantwide predetermined overhead rate is $23.00 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 Direct labor $ 270 $ 260 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

Predetermined overhead rate - S23 Per direct labor hour Direct labor wage rate - $13 Per hour Total direct labor cost - $260 Number of direct labor hours - Total direct labor cost / Direct labor wage rate -$260 $13 Per hour 20 Direct labor hours 1) Manufacturing cost assigned to Job A- 500 Number of direct labor hours Predetermined overhead rate - 20 Direct labor hours $23 Per direct labor hour S460 2) Number of units produced 60 Units Total cost - Direct material cost Direct labor cost + Manufacturing cost assigned $270+$260+$460 - $990 Unit product cost Total product cost/Number of units -S16.5 Per unit