Question

Mickley Company’s plantwide predetermined overhead rate is $22.00 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: $280

Direct Labor: $55

a) What is the total manufacturing cost assigned to Job A-500?

b) If Job A-500 consists of 50 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

Ans. A	Particulars	Amount
	Direct materials	$280
	Direct labor cost	$55
	Overhead applied	$110
	Total manufacturing cost	$445
	*Calculations:
	Actual direct labor hours = Direct labor cost / Direct labor wage rate
	$55 / $11
	5   direct labor hours
	Overhead cost applied = Predetermined overhead rate * Actual machine hours
	$22 * 5
	$110
Ans. B	Unit product cost = Total manufacturing cost / Units produced
	$445 / 50
	$8.90   per unit