Question

Fickel Company has two manufacturing departments.- Asembley and testing & packing. The predetermined overhead rates in asembley and testing and packing are $27.00 per direct labor hour and $23 per direct labor hour, respectfully. The companys direct labor wage is $29 per hour. the following pertains to job N-60

Asmebley Testing and packing

direct materials $415 $55

Direct labor $348 $87

What is the total manufacturing cost assigned to Job N-60?

If job N-60 Consists of 10 units, what is the unit product cost for this job?

1. Total Manufacturing cost _____________

2.Unit product cost ___________ per unit

Answer 1

1. Total Manufacturing cost = $ 1,298

Total Manufacting Cost
	Assembly	Testing and Packing	Total
Direct Materials	415	55	470
Direct Labor	348	87	435
Overhead	324	69	393
Total Manufacturing Cost	1087	211	1298

2. Unit product cost = $ 129.80

	Assembly	Testing and Packing	Total
Total Manufacting Cost	1087	211	1298
Units			10
Units Product Cost ( Total Manufacting Cost / Units)			129.80

Notes:

a. Direct Labor wage rate = $ 29 Per Hour

For Assembly department, total direct hour = Total Direct Labor Cost /Direct Labor wage rate

= $ 348 / $ 29 Per Hour

= 12 Hours

For testing and packing department, total direct hour = Total Direct Labor Cost /Direct Labor wage rate

= $ 87 / $ 29 Per Hour

= 3 Hours

b.

Overhead
	Assembly	Testing and Packing
Predetermined Overhead  Rate	27	23
Direct Labor Hours	12	3
Overhead ( Predetermined Overhead Rate * Direct Labor Hours)	324	69