Question

Mickley Company’s plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $16.00 per hour. The following information pertains to Job A-500: Direct materials $ 210 Direct labor $ 240 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.)

Answer 1

Direct Labour Cost for Job A- 500 --> $ 240.

Direct labor wage rate is $16.00 per hour.

Thus, No. of Labour hrs = $240 / $ 16 = 15 hrs

Computation of Maunfacturing Cost

Particulars Amt in $

Direct Material Cost 210

Direct Labour Cost 240

Overhead Cost (15 Labour hrs x $ 22) 330

Total Manufacturing Cost 780

No. of Units 60 units

Unit Product Cost (780 / 60) $ 13 per unit