Fickel Company has two manufacturing departments—Assembly and Testing & Packagin

Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $17.00 per direct labor-hour and $13.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $19.00 per hour. The following information pertains to Job N-60:

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.)

Assembly Testing & Packaging Direct materials $ 365 $ 35 Direct labor $ 133 $ 57

Explanation / Answer

Direct labor hours Assembly        = 133/19 = 7 direct labor hours Testing & Packing = 57/19 = 3 direct labor hour 1) total manufacturing cost Assembly Testing& packing Direct materials 365 35 direct labor 133 57 overhead 119 39 total manufacturing cost 617 131 2) total manufacturing cost 617+131= 748 unit product cost 748/10= 74.8 answer

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