ey Companys plantwide predetermined overhead rate is 2300 pe

ey Company\'s plantwide predetermined overhead rate is $23.00 per direct labor-hour and its direct labor wage rate is $15.00 per The following information pertains to Job A-500: Direct materials $30e Direct labor $ 300 Required 1. What is the total manufacturing cost assigned to Job A-500? 2 If Job A-500 consists of 30 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 per unit

Solution

1. Total direct labor hours = Direct labor cost / Direct labor wage rate per hour = $300 / $15 = 20

Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead applied = $300 + $300 + ($23 per DLH × 20 DLHs) = $1,060

2. Unit product cost = Total manufacturing cost / Number of units in the job = $1,060 / 30 = $35.33 per unit