Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $15.00 per direct labor-hour and $11.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $18.00 per hour. The following information pertains to Job N-60:

	Assembly				Testing & Packaging
Direct materials	$	360			$	33
Direct labor	$	117			$	45

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

CALCULATION OF THE TOTAL MANUFACTURING COST Of JOB N - 60
Particulars	Assembly	Testing & Packiing
Direct Materials =	$                               360	33
Direct Labours=	$                               117	45
Overhead	$                                  98	$                                   28
	(6.50 Hrs X $ 15 )	(2.50 Hrs X $ 11 )
Total	$                               575	$                                106
TOTAL COST = Cost of Assemble + Cost of Testing and packing
TOTAL COST = $ 575 + $ 106 =	$                               680
Unit produced in Job N-60 =	$                                  10	Units
Unit Production Cost = Total Production Cost / Unit Produced	$                            68.00	Per Units
Answer 1= Total Manufacturing Cost =	$                               680
Answer 2= Unit Produced Cost =	$                                  68
Working Note: 1
CALCULATION OF TOTAL LABOUR HOURS
	Assembly	Testing & Packiing
Labour Hours = Total Wages / Wage Rate
Labour Hours =
Total Wages =	117	45
Divide By	"/"By	"/"By
Wage Rate =	18	18
Labour Hours =	6.50	2.50