Mickley Company’s plantwide predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information pertains to Job A-500:

Direct materials

$ 260

Direct labor

$ 100

**Required:**

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

If Job A-500 consists of 40 units, what is its unit product cost?

**Note: Round your answer to 2 decimal places.**

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.

Mickley Company’s plantwide predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $10.00 per hour. The following information pertains to Job A-500:

Direct materials
$ 260
Direct labor
$ 100

Required:
What is the total manufacturing cost assigned to Job A-500?
If Job A-500 consists of 40 units, what is its unit product cost?

Note: Round your answer to 2 decimal places.

Find out how to calculate the total manufacturing cost and unit product cost for Mickley Company’s Job A-500 using given labor rates, overhead, and materials. Learn the step-by-step process with direct labor-hour calculation and overhead application. Perfect for business and accounting students.

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