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 $250

Direct labor $165

Required:

1. What is the total manufacturing cost assigned to job A500?

2. If job A500 consists of 80 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

Answer 1

Answer:

Total labor hours=$165/11=15 hours

Hence total overhead= (15 hours*$23.00) =$345

1. Total manufacturing cost $760

Working:

Total manufacturing cost=Direct materials+ Direct labor+ total overhead

= (250+165+345) =$760

2) Unit product cost __$9.50 per unit

Working:

Average cost assigned to each unit=$760/80

                                                              =$9.50