Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $20.00 per direct labor-hour and $16.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $22.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 380 $ 41 Direct labor $ 187 $ 99 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.) 2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Answer and Explanation:

The computation is shown below:

a. The total manufacturing cost is

Particulars Assembly Testing & Packing Total

Direct materials 380 41 421

Direct labor 187 99 286

Overhead applied 170 72 242

Total 737 212 949

Total manufacturing cost $949

2

Unit product cost $94.90 ($949 ÷ 10 per unit)

Workings:

Overhead applied:

Assembly 170 ((187 ÷ 22) × 20)

Testing & Packing 72 ((99 ÷ 22) × 16)