Question

Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $23.00 per direct labor-hour and $19.00 per direct labor-hour, respectively. The company's direct labor wage rate is $25.00 per hour. The following information pertains to Job N-60: Testing & Packaging $ 47 $ 25 Assembly $ 395 $ 250 Direct materials Direct labor 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.) 1. Total manufacturing cost 2. Unit product cost per unit

Answer 1

1	Total manufacturing cost	$     966.00
2	Unit product cost	$       96.60	per unit
	Explanation
	Computation of the total direct labor-hours required for Job N-60
		Assembly	Testing &Packaging
	Direct labor cost (a)	$     250.00	$                   25.00
	Direct labor wage rate per hour (b)	$       25.00	$                   25.00
	Total direct labor hours (a) / (b)	10.00	1.00
	Total manufacturing cost assigned to Job N-60
		Assembly	Testing &Packaging
	Direct materials ($395 + $47)		$                 442.00
	Direct labor ($250 + $25)		$                 275.00
	Assembly Department	$     230.00
	($23 per DLH × 10 DLHs)
	Testing & Packaging Department	$       19.00	$                 249.00
	$19 per DLH × 1 DLHs)
	Total manufacturing cost		$                 966.00
	Computation of the unit product cost for Job N-60
	Total manufacturing cost (a)		$                 966.00
	Number of units in the job (b)		10.00
	Unit product cost (a) / (b)		$                   96.60