QUESTION 1

Luthan Company uses a predetermined overhead rate of $22.10 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $265,200 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-hours.

The company incurred actual total manufacturing overhead costs of $270,000 and 11,000 total direct labor-hours during the period.

Required:

Determine the amount of manufacturing overhead that would have been applied to all jobs during the period.

QUESTION 2

Mickley Companys predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $16.00 per hour. The following information pertains to Job A-500:

Direct materials	$210
Direct labor	$320

Required:

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

2.	If Job A-500 consists of 60 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)