Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $13.00 per direct labor-hour and $9.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $16.00 per hour. The following information pertains to Job N-60: Assembly Testing & PackagingDirect materials $340 $25Direct labor $180 $40What is the total manufacturing cost assigned to Job N-60?

Answer 1

The total manufacturing cost assigned to Job N-60 is $3,285.

Step-by-step explanation:

The total manufacturing cost assigned to Job N-60 can be calculated by adding the direct materials cost, direct labor cost, and overhead cost. In this case, we have a direct materials cost of $340 for Assembly and $25 for Testing and packaging. The direct labor cost is $180 for Assembly and $40 for Testing & Packaging. To calculate the overhead cost for each department, we multiply the direct labor cost by the predetermined overhead rate. For Assembly, the overhead cost is $180 * $13.00 = $2,340. For Testing & Packaging, the overhead cost is $40 * $9.00 = $360. Therefore, the total manufacturing cost assigned to Job N-60 is $340 + $25 + $180 + $40 + $2,340 + $360 = $3,285.