Question

Mickley Company’s plantwide predetermined overhead rate is $24.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500:

Direct materials	$	280
Direct labor	$	300

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.)

Mickley Company’s plantwide predetermined overhead rate is $24.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500:

Direct materials	$	280
Direct labor	$	300

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.)

Mickley Company’s plantwide predetermined overhead rate is $24.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500:

Direct materials	$	280
Direct labor	$	300

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

Answer:

Given data :

• Overhead rate = $ 24
• Direct labor wage rate = $ 15
• Direct materials = $ 280
• Direct labor = $ 300

Total labor hours = direct labor /Direct labor wage rate = $300/$15 = 20 hours

Total overhead = Overhead rate * Total labor hours = $ 24 * 20 h= $ 480

1.

Calculation of total manufacturing cost assigned to Job A-500:

Total manufacturing cost

=Direct materials+Direct labor+total overhead = $ 280 + $ 300 + $ 480 = $ 1,060

$ 1,060

2.

Calculation of Job A-500 consists of 80 units the unit product cost for this job is :

Unit product cost

= Total manufacturing cost /  80 units = $ 1,060 / 80 = $ 13.25

$ 13.25