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 $21.00 per direct labor-hour and $17.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $23.00 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 $ 385 $ 43 Direct labor $ 207 $ 115

Explanation / Answer

1.total manufacturing cost assigned to job N-60.

note: direct labour hours in assembly department = direct labour cost / direct labour cost per hour

=>$207 / $23

=>9 hours.

direct labour hours in testing and packaging department

=>$115 / $23

=>5 hours.

assembly overhead applied to N-60 =>9 hours * $21.00

=>$189.

testing and packaging => 5 hours * $17.00

=>$85.

Total manufacturing cost assigned to Job N-60.

2.Unit product cost = total manufacturing overhead / number of units

=>$1,024 / 10 units

=.$10.24.

1.total manufacturing cost $1,024 2.unit product cost $10.24 per unit

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