Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $19.00 per direct labor-hour and $15.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $21.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 375 $ 39 Direct labor $ 168 $ 84

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

Particulars	Assembly	Testing
Direct Labor Cost (a)	$168	$ 84
Direct Labor was rate per hour (b)	$ 21	$ 21
Total Direct Labor Hours (a/b)	$ 8	$ 4

1. Total Manufacturing Cost

Particulars	Assembly	Testing $ Packing
Direct Materials($375+$39)		$ 414
Direct Labor ($168 +$84)		$ 252
Assembly Department ($19 per DLH × 8 DHS)	$152
Testing &Packing Department ($15 per DLH × 4 DLHs	$60	$212
Total Manufacturing Cost		$878

2. Unit Product Cost

Total Manufacturing Cost (a)	$878
Number of Units in the Job (b)	10
Unit Product Cost (a/b)	$87.80