Question

Exercise 2-4 (Algo) Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined Overhead Rates (LO2-4) Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $12.00 per direct labor-hour and $8.00 per direct labor-hou respectively. The company's direct labor wage rate is $15.00 per hour. The following information pertains to Job N-60 Direct materials Direct labor Assembly $345 $ 75 Testing & Packaging $27 $15 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

total manufacturing cost	$68
unit product cost	$53	per unit

1)

total manufacturing cost=manufacturing cost of assembly + manufacturing cost of testing and packaging

manufacturing cost of assembly= (direct labour of assembly/labour rate)*predetermined overhead rate of assembly

direct labour of assembly=$75

labour rate=$15 per hour

predetermined overhead rate of assembly=$12 per hour

manufacturing cost of assembly=($75/$15)*$12=$60

manufacturing cost of testing and packaging= (direct labour of testing and packaging/labour rate)*predetermined overhead rate of testing and packaging

direct labour of testing and packaging=$15

labour rate=$15 per hour

predetermined overhead rate of testing and packaging=$8 per hour

manufacturing cost of testing and packaging =($15/$15)*$8=$8

total manufacturing cost=$60+$8=$68

2) $53 per unit

unit product cost=(total material +total labour + total manufacturing cost)/10 units

total material=$345+$27=$372

total labour=$75+$15=$90

total manufacturing cost=$60+$8=$68

unit product cost=($372+$90+$68)/10=$53 per unit