Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage...

Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500:


Direct materials	$	280
Direct labor	$	120

Required:

1. What is the total manufacturing cost assigned to Job A-500?

1b. If Job A-500 consists of 30 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Expert Solution

1) Number of direct labor hours = $120 / $12 = 10 hours

Computation of Total Manufacturing cost assigned to Job A-500.

Direct Materials = $280

Direct Labor = $120

Manufacturing Overhead (10 * $23) = $230

Total Manufacturing cost = $630

So, Total Manufacturing cost assigned to Job A-500

2) Unit product cost for this job = $630 / 30 units

= $21 per unit

Unit product cost for this job is $21 per unit

ekkarill92 answered 2 years ago

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