Question

Mickley Company’s plantwide predetermined overhead rate is $20.00 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	$	210
Direct labor	$	60

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.)

Answer 1

Working Notes:
	Calculation of No. of Hours used in production of Job A - 500
	Direct Labor Cost	$                                 60
	Divide By	"/" By
	Direct Labor Cost Per Hours	$                                 12
	Direct labor hours per Unit	5.00
Solution: 1 & 2
	CALCULTION OF UNIT PRODUCT COST FOR JOB A - 500
		Amount
	Direct Materials	$                         210.00
	Direct Labor Cost	$                           60.00
	Variable Manufacturing overhead cost (5 Hrs X $ 20)	$                         100.00
	Total Cost	$                               370
	Divide By	"/" By
	N. of Units in Job	50
	Cost Per Unit ($ 370 / 50 Units)	$                              7.40
Answer =
	Total Cost = $ 370
	Cost Per Unit = $ 7.40