Question

Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500:

Direct materials	$	220
Direct labor	$	60

Required:

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

2. If Job A-500 consists of 90 units, what is the unit product cost for this job?

Answer 1

--Requirement 1 and 2

>All working forms part of the answer

A	Direct Material	$220
B	Direct Labor	$60
C = ($60/$12) hours x $ 23	Overhead applied	$115
D = A+B+C	Total manufacturing cost assigned	$395	Answer [1]
E	Total units	90
F = D/E	Unit Product Cost	$4.39	Answer [2]