Mickley Companys predetermined overhead rate is 2300 per dir

Mickley Company’s predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $15.00 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 30 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)

Solution

Labor hours = Direct wages / wage rate = 75 / 15 = 5

Total manufacturing cost = 290 + 75 + 23*5 = 480

Average cost assigned to each unit = 480 / 30

= 16 per unit