Question

Exercise 2-3 Computing Total Job Costs and Unit Product Costs Using a Plantwide Predetermined Overhead Rate [LO2-3) Mickley Company's plantwide predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor 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

	Answer (1)
	Direct labor cost / Direct labor wage rate per hour
	$ 110/ 11 Per Hour.
	= 10 Direct Labour Hours
1	Total Manufacturing Cost assigned to Job A-500
	= ($21* 10 Direct Labour Hours) + $290 + $110
	= $ 210 + $290 + $110
	Total Manufacturing Cost = $ 610
2	Unit product cost for Job A-500
	Total Manufacturing Cost / Number of Unit
	$610 / 60 units
	Unit product cost for Job A-500 = $10.17 per unit