Mickley Company’s predetermined overhead rate is $19.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500

Mickley Company’s predetermined overhead rate is $19.00 per direct labor-hour and its direct labor wage rate is $11.00 per hour. The following information pertains to Job A-500:

  

Direct materials	$240
Direct labor	$55

  

Required:

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

Total manufacturing cost = $ 390

2.	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.)

Average cost = $ 13.00

Explanation:

1.

Total direct labor-hours required for Job A-500:

   

Direct labor cost (a)	$	55
Direct labor wage rate per hour (b)	$	11
Total direct labor hours (a) ÷ (b)		5

    

Total manufacturing cost assigned to Job A-500:

   

Direct materials	$	240
Direct labor		55
Manufacturing overhead applied    ($19 per DLH × 5 DLHs)		95
Total manufacturing cost	$	390

2.     

Unit product cost for Job A-500:

       

Total manufacturing cost (a)	$	390
Number of units in the job (b)		30
Unit product cost (a) ÷ (b)	$	13.00