Question

Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company's direct labor wage rate is $20.00 per hour. The following information pertains to Job N-60: Testing & Packaging $ 25 $ 40 Assembly $ 340 $ 180 Direct materials Direct labor Required: 1. What is the total manufacturing cost assigned to Job N-60? 2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost per unit

Answer 1

Solution

Total manufacturing cost	$              753.00
Unit product cost	$ 75.30 Per unit

Working

Direct material	$              365.00
Direct labor	$              220.00
Manufacturing overhead	$              168.00
Total manufacturing cost	$              753.00
Number of units in job	10
Unit product cost	$                75.30

.

	Assembly	Testing & Packaging	Total
Labor cost	$              180.00	$                40.00
Divided by : Labor rate per hour	$                20.00	$                20.00
Total hours worked	9	2
Multiplied by : Predetermined overhead rate	$                16.00	$                12.00
Overhead applied	$              144.00	$                24.00	$ 168.00