Question

Check my word Mickley Company's plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $14.00 per hour. The following information pertains to Job A-500: Direct materials Direct labor $ 270 $ 210 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 cost 2. Unit product cost per unit < Prev 10 of 20 Next > E NT 367 A Sy...docx Tesla Files Su....docx A 2 Chapter 5(2).pptx A McDonalds C...docx

Answer 1

Answer:

1	Total manufacturing cost	$825
2	Unit product cost	$16.50

Calculations:

Requirement 1:

i.Total direct labor hours = Total direct labor cost ÷ Direct labor wage rate per hour = $210 / $14.00 = 15 labor hours

ii.Manufacturing overhead = Total labor hours x Predetermined overhead rate = 15 x $23.00 = $345

Direct materials	$270
Direct labor	$210
Manufacturing overhead	$345
Total Manufacturing cost	$825

Requirement 2:

Unit product cost = Total manufacturing cost ÷ Total units = $825/50 = $16.50 per unit