Question

Exercise 2-4 (Algo) Computing Total Job Costs and Unit Product Costs Using Multiple Predetermine Overhead Rates (LO2-4) Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead ratesi Assembly and Testing & Packaging are $15.00 per direct labor-hour and $11.00 per direct labor-hour, respectively. The company direct labor wage rate is $18.00 per hour. The following information pertains to Job N-60: Direct materials Direct labor Assembly $360 $117 Testing & Packaging $33 $45 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

Direct Labour hours used in Job
			Assembly	Testing and Packing
Labour cost incurred		117	45
Divide: Labour rate per DLH	18	18
DLH used in Job		6.5	2.5
Overheads applied
			Assembly	Testing &
				Packing
DLH used in Jobs		6.5	2.5
Multiply: OH rate per DLH	15	11
Overheads assigned		97.5	27.5
Total Manufacturing cost
			Assembly	Testing &	Total
				Packing
Direct Material used		360	33	393
Direct Labour cost		117	45	162
Overheads applied		97.5	27.5	125
Total Manufacturing cost	574.5	105.5	680
Divide: Units produced				10
Unit product cost				68
Final Answer:
Total Manufacturing cost	680
Unit Product cost		68	per unit