Question

Mickley Company’s plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct materials $ 231 Direct labor $ 153 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

1) the total manufacturing cost is=$510

2) cost per unit=$12,75unit

Step-by-step explanation:

The following information pertains to Job A-500:

Direct materials $ 231

Direct labor $ 153

We need to calculate the amount of overhead for Job a-500.

We know that the overhead is determined by labor hours. The hour price is $17.

The number of hours: $153/17=9hours

Overhead= 9hours*$14=$126

1) the total manufacturing cost is=231+153+126=$510

2) cost per unit= $510/40units=$12,75unit

Answer 2

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

First, calculate the number of hours.

= Direct labor/Wage rate

= $153/$17

= 9hours

Also,

Overhead

= Number of hours * Predetermined overhead rate

= 9hours * $14

= $126

Hence;

Total manufacturing cost

= Direct materials + Direct labor + Overhead

= 231 +153 + 126

=$510

2. If Job A-500 consists of 40 units, what is the unit product cost for this job.

Cost per unit = $510/40 units

= $12.75units