Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $22.00 per direct labor-hour and $18.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $24.00 per hour. The following information pertains to Job N-60:

	Assembly				Testing & Packaging
Direct materials	$	390			$	45
Direct labor	$	228			$	132

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	The total manufacturing cost for Job N-60	$     1,103.00
2	Unit product cost for Job N-60	$       110.30	per unit
	Explanation
	The total direct labor-hours required for Job N-60:
		Assembly	Testing $
			Packaging
	Direct labor cost (a)	$       228.00	$       132.00
	Direct labor wage rate per hour (b)	$         24.00	$         24.00
	Total direct labor hours (a) / (b)	9.50	5.50
	Computation of the total manufacturing cost and unit product cost for Job N-60
		Assembly	Testing $
			Packaging
	Direct materials ($390 + $45)		$       435.00
	Direct labor ($228 + $132)		360.00
	Assembly Department($22 per DLH × 9.50 DLHS)	$       209.00
	Testing & Packaging Department	99.00	308.00
	($18 per DLH × 5.50 DLHs)
	Total manufacturing cost		$   1,103.00
	Total manufacturing cost (a)		$     1,103.00
	Number of units in the job(b)		10.00
	Unit product cost (a) / (b)		$      110.30	per unit