Final answer:
The unit product cost for Job N-60 is $120.90 per unit, calculated by totaling direct materials, direct labor, and applied overhead for both the Assembly and Testing & Packaging departments, and then dividing by the number of units produced.
Step-by-step explanation:
To calculate the unit product cost for Job N-60, which consists of 10 units, we need to determine the total cost that includes direct materials, direct labor, and applied overhead for each department (Assembly and Testing & Packaging), and then divide by the number of units produced.
First, we add up the direct materials and direct labor for both departments:
- Direct materials: $410 + $53 = $463
- Direct labor: $322 + $70 = $392
Next, we calculate the total overhead applied to the job by multiplying the direct labor hours by the predetermined overhead rates for each department. To find the direct labor hours, we divide the direct labor cost by the wage rate:
- Direct labor hours in Assembly: $322 / $28 per hour = 11.5 hours
- Direct labor hours in Testing & Packaging: $70 / $28 per hour = 2.5 hours
Applied overhead for each department:
- Assembly: 11.5 hours × $26 per hour = $299
- Testing & Packaging: 2.5 hours × $22 per hour = $55
We then add the totals for direct materials, direct labor, and applied overhead to find the total job cost:
$463 (direct materials) + $392 (direct labor) + $299 (Assembly overhead) + $55 (Testing & Packaging overhead) = $1209
The unit product cost is calculated by dividing the total job cost by the number of units:
$1209 / 10 units = $120.90 per unit
The unit product cost for Job N-60 is therefore $120.90 when rounded to two decimal places.