Mickley Company’s predetermined overhead rate is $23.00 per direct labor-hour an
ID: 2608527 • Letter: M
Question
Mickley Company’s predetermined overhead rate is $23.00 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?
If Job A-500 consists of 30 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 $15.00 per hour. The following information pertains to Job A-500:
Explanation / Answer
1.
Total direct labor-hours required for Job A-500:
Total Direct labor hours = Direct labor cost / Direct labor wage rate per hour
= $75 / 15
= 5
Total manufacturing cost assigned to Job A-500:
Direct material = 290
Direct labor = 75
Manufacturing overhead applied ($23 per DLH × 15 DLHs) = 345
Total Manufacturing cost = 710
2. Unit product cost for Job A-500:
= Total Manufacturing cost / Number of units in the job
= 710/30
= 23.67
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