Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $26.00 per direct labor-hour and $22.00 per direct labor-hour, respectively. The company's direct labor wage rate is $28.00 per hour. The following information pertains to Job N-60:

a) Assembly Testing & Packaging
b) Direct materials$ 410. $ 53
c) Direct labor $ 322 $ 70
What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)

Answer 1

The total manufacturing cost assigned to Job N-60 is $10,767.

Step-by-step explanation:

To find the total manufacturing cost assigned to Job N-60, we need to calculate the overhead cost for each department and then add it to the direct material and direct labor costs.

Overhead Cost:

For the Assembly department, the predetermined overhead rate is $26.00 per direct labor-hour. Since the direct labor cost for Assembly is $322, we can calculate the overhead cost as follows: $322 × $26 = $8,372.

For the Testing & Packaging department, the predetermined overhead rate is $22.00 per direct labor-hour. Since the direct labor cost for Testing & Packaging is $70, we can calculate the overhead cost as follows: $70 × $22 = $1,540.

Total Manufacturing Cost:

To find the total manufacturing cost, we add the direct materials, direct labor, and overhead costs for both departments. In this case, it would be: $410 + $53 + $322 + $70 + $8,372 + $1,540 = $10,767.