Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $30.00 per direct labor-hour and $26.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $32.00 per hour. The following information pertains to Job N-60:

	Assembly				Testing & Packaging
Direct materials	$	430			$	61
Direct labor	$	432			$	144

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

1)
		Assembly	Testing & Packaging
	Direct Labor	$                    432	$                              144
	Wages rate	$                      32	$                                 32
	Number of labor hours required	13.5	4.5
		($432/32)	($144/32)
	Total manufacturing cost assigned to Job N-60
		Assembly	Testing & Packaging	Total
	Direct Materials	430	61	491
	Direct Labor	$                    432	$                              144	$           576
	Manufacturing overhead	405	117	$           522
		(13.5*$30)	(4.5 hours*$26)
	Total manufacturing cost assigned to Job N-60			$       1,589
2)	Product cost = $1589/10
	=$158.9