Question

Mickley Company's plantwide predetermined overhead rate is $23.00 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 Direct labor $ 210 $ 110 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 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 es

Answer 1

1. Total Manuf. Cost for Job A 500
Direct Materials	210	$
Direct Labor	110	$
OH (23*10) (OH Rate * Labor Hours)	230	$
Total	550	$
2. Unit Product Cost	13.75	$
(Manuf. Cost / NO. of Units) (550/40)
Working Note:
Direct Labor for job A 500	110	$
Direct labor wage rate per hour	11	$
Direct labor hours (a/b)	10	Hours