Question

Mickley Company's plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate ls $1.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor 220 110 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 80 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) Total manufacturing cost 2. Unt product cost per unit

Answer 1

Answers :

1. Total Manufacturing cost $550

2. Unit Product Cost $6.88 Per unit

Explanation:

1. Computation of Labor hours worked:

= Direct labor cost / Wage rate per hour

= $110 / $11

=10 Hours

Computation of overhead :

= Hours * Over head rate per per direct labor

= 10 * $22

=$220

Computation of Total Manufacturing cost:

Direct Material = $220

Direct Labor = $110

Over head = $220

Total = $550

2. Computation of unit product cost:

= Total Manufacturing cost / No of units

= $550 / 80

= $6.88 per unit