Mickley Company’s predetermined overhead rate is $20.00 per direct labor-hour an

Question

Mickley Company’s predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500

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

2. If Job A-500 consists of 50 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)

Mickley Company’s predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500

Explanation / Answer

Direct material cost = $220

Direct labor cost = $150

Direct labor wage rate per hour = $15

Labor hour = $150 /$15 = 10

Total manufacturing cost assigned to Job A-500 = direct material cost + direct labor cost + overhead cost

= $220 + $150 + (20 * $10)

= $570

2. If Job A-500 consists of 50 units, what is the average cost assigned to each unit included in the job = $570 /50units

= $11.40

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