Question

Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company's direct labor wage rate is $20.00 per hour. The following information pertains to Job N.60 Testing Packaging Assembly $ 340 Direet materials Direct labor Required: 1. What is the total manufacturing cost assigned to Job N-60? 2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost Mickley Company's plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct materiale Direct labor $231 $ 153 Required: 1. What is the total manufacturing cost assigned to Job A 500? 2. If Job A-500 consists of 40 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) 1. Total manufacturing cost 2. Unit product cost per unit Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $257400 of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor hours. The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 total direct labor-hours during the period. Required: Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period, Manufacturing overhead applied Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20.000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21,000 hours. Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate $ 5.90 per DLH

Answer 1

1a) Total manufacturing cost

Direct material (340+25)	365
Direct labor (180+40)	220
Overhead (9*16+2*12)	168
Total manufacturing cost	753

1b) Unit product cost = 753/10 = 75.30

2a) Total manufacturing cost

Direct material	231
Direct labor	153
Overhead (153/17*14)	126
Total manufacturing cost	510

2b) Unit product cost = 510/40 = 12.75

3) Applied overhead = 23.40*10800 = 252720

4) Predetermine overhead rate = (94000/20000)+2 = 6.70 per DLH