Question

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 $ 230 Direct labor $ 55

Required:

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

2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

Answer: Requirement 1: Total direct labor-hours required for Job A-500: Amount(s) Direct labor cost (a) Direct labor wage rate per hour (6) Total direct labor hours (a) = (6) Total manufacturing cost assigned to Job A-500: Amount(s) Direct materials Direct labor Manufacturing overhead applied (S21 per DLH 5 DLHS) Total manufacturing cost Requirement 2: Unit product cost for Job A-500: Amount(s) Total manufacturing cost a Number of units in the job (b) Unit product cost (a) = (b) 390 90 5.57 Average Cost = $5.57