Mickley Company’s predetermined overhead rate is $23.00 per direct labor-hour an

Question

Mickley Company’s predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500:

  

  

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

         

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 $23.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500:

Explanation / Answer

1.Calculate 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?

Average cost per unit = 385/50 = 7.70 per unit

Direct material 210 Direct labour 60 Manufacturing overhead (60/12)*23 115 Total manufacturing cost 385

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