Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $15.00 per direct labor-hour and $11.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $18.00 per hour. The following information pertains to Job N-60:

Assembly Testing & Packaging
Direct materials $360 $33
Direct labor $117 $45
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

Instructions are listed below

Step-by-step explanation:

Giving the following information:

The predetermined overhead rate:

Assembly and Testing= $15.00 per direct labor-hour

Packaging= $11.00 per direct labor-hour

The company’s direct labor wage rate is $18.00 per hour.

Job N-60:

Assembly Testing & Packaging

Direct materials $360 $33

Direct labor $117 $45

A) We need to use the following formula:

total cost= direct material + direct labor + manufacturing overhead

First, we need to determine the number of direct hours used:

Assembly= 117/18= 6.5 hours

Packaging= 45/18= 2.5 hours

total cost= (360 + 33) + (117 + 45) + (6.5*15 + 2.5*11)= $680

B)

Unitary cost= 680/10= $68