Question

Mickley Company's plantwide predetermined overhead rate is $21.00 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 $290
Direct labor $150
1. What is the total manufacturing cost assigned to Job A-500?

Answer 1

The total manufacturing cost assigned to Job A-500 is $3,590.00.

Step-by-step explanation:

The total manufacturing cost assigned to Job A-500 can be calculated by multiplying the direct labor hours with the predetermined overhead rate and adding the direct materials and direct labor costs. In this case, the direct labor cost is given as $150.00 and the predetermined overhead rate is $21.00 per direct labor-hour.

So, the manufacturing overhead cost is calculated as: $150.00 x $21.00 = $3,150.00.

Adding the direct materials cost of $290.00 and the direct labor cost of $150.00 gives a total manufacturing cost of $3,590.00 for Job A-500.