Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $25.00 per direct labor-hour and $21.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $27.00 per hour. The following information pertains to Job N-60:

	Assembly				Testing & Packaging
Direct materials	$	405			$	51
Direct labor	$	297			$	54

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

Direct labor hours:
Assembly	11	=297/27
Testing & Packaging	2	=54/27
1
Direct materials	456	=405+51
Direct labor	351	=297+54
Overhead applied:
Assembly	275	=11*25
Testing & Packaging	42	=2*21
Total manufacturing cost	1124
2
Total manufacturing cost	1124
Divide by Units	10
Unit product cost	112.40	per unit