princessjsl22
18.06.2020 •
Business
Mickley Company calculates its predetermined overhead rate on the basis of direct labor hours. At the beginning of the period, Luthan estimated $280,000 of total manufacturing overhead cost and estimated an activity level of 20,000 direct labor-hours. Its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500:
Direct materials $230
Direct labor hours worked 9
Required:
1. What is the predetermined overhead rate?
2. What is the total manufacturing cost assigned to Job A-500?
3. If Job A-500 consists of 40 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)
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