Mickley Company’s plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $14.00 per hour. The following information pertains to Job A-500:         Direct materials $ 210 Direct labor $ 140     Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 90 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1.Total manufacturing cost 2. Unit product cost $6.33per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mickley Company’s plantwide predetermined overhead rate is $22.00 per direct labor-hour and its direct labor wage rate is $14.00 per hour. The following information pertains to Job A-500:

 

     
Direct materials $ 210
Direct labor $ 140
 

 

Required:

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

2. If Job A-500 consists of 90 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

1.Total manufacturing cost

2. Unit product cost $6.33per unit

 

 

 

 
 
 
Expert Solution
Step 1

First, compute the direct labor hours per unit as shown below:

Direct labor hour per unit = $140/$14

Direct labor hour per unit = 10 hours

 

 

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