Question

Mickley Company’s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $13.00 per hour. The following information pertains to Job A-500: Direct materials $ 290 Direct labor $ 195 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 60 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Predetermined overhead rate= $23.00 per direct labor-hour

Direct labor wage= $13.00 per hour

Job A-500:

Direct materials $290

Direct labor $195

First, we need to calculate the number of direct labor hours:

Direct labor hours= 195/13= 15

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 15*23= $345

Total job cost= 290 + 195 + 345= $830

Finally, the unitary cost:

Unitary cost= 830/60

Unitary cost= $13.83