To solve this problem, we'll calculate the total manufacturing cost and the unit product cost for Job A-500 step by step.

1. Direct Labor-Hours for Job A-500:

We are given that the direct labor wage rate is $10.00 per hour, and the direct labor cost for Job A-500 is $100.

We can calculate the number of direct labor hours used for the job: $\text{Direct Labor-Hours} = \frac{\text{Direct Labor Cost}}{\text{Direct Labor Wage Rate}} = \frac{100}{10} = 10 \text{ hours}$

2. Manufacturing Overhead Applied:

Mickley Company uses a predetermined overhead rate of $18.00 per direct labor-hour. So, we can calculate the overhead applied to Job A-500: $\text{Manufacturing Overhead Applied} = \text{Direct Labor-Hours} \times \text{Predetermined Overhead Rate} = 10 \times 18 = 180$

3. Total Manufacturing Cost:

The total manufacturing cost includes direct materials, direct labor, and manufacturing overhead applied. Let's sum these components: $\text{Total Manufacturing Cost} = \text{Direct Materials} + \text{Direct Labor} + \text{Manufacturing Overhead Applied}$ $\text{Total Manufacturing Cost} = 260 + 100 + 180 = 540$

So, the total manufacturing cost assigned to Job A-500 is $540.

4. Unit Product Cost:

To find the unit product cost, we divide the total manufacturing cost by the number of units in Job A-500 (which is 40 units): $\text{Unit Product Cost} = \frac{\text{Total Manufacturing Cost}}{\text{Number of Units}} = \frac{540}{40} = 13.50$

Thus, the unit product cost for Job A-500 is $13.50.

Final Answers:

• Total Manufacturing Cost assigned to Job A-500 = $540.00
• Unit Product Cost for Job A-500 = $13.50

Would you like further details or clarifications?
Here are 5 related questions to extend your understanding:

1. How would the total manufacturing cost change if the overhead rate increased?
2. What is the impact of using a different predetermined overhead rate on unit product costs?
3. How would a change in direct labor hours affect the total manufacturing cost?
4. If direct materials costs were $300 instead of $260, what would the new unit product cost be?
5. What is the significance of using a plantwide predetermined overhead rate compared to departmental rates?

Tip: Always ensure your overhead rate reflects the most accurate estimate for labor or machine hours to maintain cost accuracy.