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Week 1 Homework 2

Week 1 Homework 2

Q Mickley Company’s plant wide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct materials $ 231 Direct labor $ 153 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)

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Explanation 1. Total direct labor-hours required for Job A-500: Direct labor cost (a) $ 153 Direct labor wage rate per hour (b) $ 17 Total direct labor hours (a) ÷ (b) 9 Total manufacturing cost assigned to Job A-500: Direct materials $ 231 Direct labor 153 Manufacturing overhead applied ($14 per DLH × 9 DLHs) 126 Total manufacturing cost $ 510