Mickley Company’s predetermined overhead rate is $14.00 per direct labor-hour an

Question

Mickley Company’s predetermined overhead rate is $14.00 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 40 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 $14.00 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

Total hours for job A - 500 = Direct labor/ direct labor wage rate = 108/12 = 9 hrs

Total over head cost = overhead cost per labor hours * no. of labor hours = 14 * 9 = $ 126

total manufacturing cost = Direct materials cost + Direct labor cost + Total over head cost = 230 + 108 + 126 = $464

Cost assigned to each unit = total manufacturing cost/ number of units = 464/40 = $11.6

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