Question

Fickel Company has two manufacturing departments--Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $27.00 per direct labor-hour and $23.00 per direct labor-hour, respectively. The company's direct labor wage rate is $29.00 per hour. The following information pertains to Job N-60: Direct materials Direct labor Assembly $415 $348 Testing Packaging $55 $87 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	$        1,298
2	Unit product cost	$     129.80	per unit

Explanations :-

Direct materials ($415 + $55)	$           470
Direct labor ($348 + $87)	$           435
Overhead:
Assembly (12 DLH * $27)	$           324
Test. & Pack. (3 DLH * $23)	$              69
Total Manufactruing cost	$        1,298
÷ Units in N-60 Job	10
	$     129.80
	Assembly	Test. & Pack.
Direct labor cost	$           348	$          87
÷ Direct labor wage rate	$              29	$          29
Direct labor hours	12	3