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: Assembly Testing & Packaging Direct materials $ 385 $ 43 Direct labor $ 207 $ 115 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

• All working forms part of the answer
• Working

--DLH = Direct Labor Hours

Working		Assembly testing department	Packaging Department
A	Direct labor cost	$207	$115
B	Direct labor cost rate	$                                   23.00 per DLH	$                                23.00 per DLH
C=A/B	No. of hours	9 DLH	5 DLH
D	Predetermined Overhead Rates per DLH	$                                   21.00	$                                17.00
E=C x D	Overheads allocated	$                                 189.00	$                                85.00

• Answer

	Assembly testing department	Packaging Department	Total
	[A]	[B]	[A+B]
Direct materials	$                                 385.00	$                                43.00	$                                     428.00
Direct labor	$                                 207.00	$                              115.00	$                                     322.00
Overheads allocated	$                                 189.00	$                                85.00	$                                     274.00
Total manufacturing cost	$                                 781.00	$                              243.00	$                                 1,024.00
Total Units			$                                       10.00
Unit Product cost			$                                     102.40

Total Manufacturing cost = $ 1,024
Unit Product Cost = $ 102.40