What was the companys plantwide predetermined overhead rate

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Mickley Company's plantwide predetermined overhead rate is $20.00 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 $ 260 Direct labor $ 140 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.) Total manufacturing cost 2.Unit product cost perunit

Answer & Explanation

Solved by verified expert

1. Total Manufacturing Cost       $600

2. Unit Product Cost                      $15 per unit

Step-by-step explanation

Computations:

1. Total Manufacturing Cost:

    Direct Materials                                    $260

    Direct labor                                             140

    Overhead                                                200  

   Total Manufacturing Cost                     $600

Overhead is computed as follows:

Direct Labor                                              140

divide  by labor wage rate per hour        14  

Total direct labor hours used                  10

x overhead rate                                         20  

Overhead cost                                            200

2. Cost per unit:

   Total Manufacturing Cost                     $600

   divide by units produced                           40

   Unit cost per unit                                       $15

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