Question

Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information pertains to Job A-500: Direct materials $ 230 Direct labor $ 150 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 costper unit. per unit

2. Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $12.00 per direct labor-hour and $8.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $15.00 per hour. The following information pertains to Job N-60:

	Assembly				Testing & Packaging
Direct materials	$	345			$	27
Direct labor	$	75			$	15

Required:

1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)

2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Req 1.
Total Manufacturing Cost:
Material cost		230
labour cost			150
Overheads cost (15 DLH @ 20)	300
Total Manufacturing Cost:	680
Cost per unit:
Total Manufacturing cost	680
Divide: Units produced		50
Cost per unit:		13.6
Req 2.
Labour hours used:
		Assembly	Testing
Direct labour cost	75	15
Divide: Wages rate	15	15
DLH used		5	1
Total Manufacturing cost:
		Assembly	Testing	Total
Material cost	345	27	372
Labour cost		75	15	90
OH applied		60	8	68
Total Manufacturing cost	480	50	530
Total Manufacturing cost: $ 530
Unit product cost:
Total manufacturing cost	530
Divide: Units produced		10
Unit product cost:		53