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	$	240
Direct labor	$	195

Required:

1. What is the total manufacturing cost assigned to Job A-500?

2. If Job A-500 consists of 50 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

1.Total manufacturing cost2.Unit product costper unit?

2.Unit product costper unit?

Answer 1

Answers

• Requirement 1

A	Direct materials	$240
B	Direct Labor	$195
C = ($195 / $13) x $ 23	Overhead applied	$345
D = A+B+C	Total manufacturing cost assigned to Job	$780	Answer

• Requirement 2

Unit product cost per unit
= $ 780 / 50 units
= $ 15.60 per unit.