Question

Mickley Company’s plantwide predetermined overhead rate is $19.00 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	$	260
Direct labor	$	210

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.)

Answer 1

• Total direct labor hours spent on Job A-500 = Total direct labor costs ÷ Direct labor wage rate per hour = $210 ÷ $14 = 15 Direct Labor Hours (DLH)

1. Total manufacturing cost assigned to Job A-500:
   Direct material cost Direct labor cost (15 DLH * $14) Manufacturing overhead (15 DLH $19) Total manufacturing cost $ 260.00 $ 210.00 $ 285.00 $ 755.00
   
2. Unit product cost for this job:

• Unit product cost = Total manufacturing costs assigned to the job  ÷ Number of units in the job = $755 ÷ 80 units = $9.44