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 $20.00 per direct labor-hour and $16.00 per direct labor-hour, respectively. The company's direct labor wage rate is $22.00 per hout. The following information pertains to Job N-60: Testing & Assembly Packaging Direct materials Direct labor $380 $187 $41 $99 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

Answer

1. $ 949

2. $ 94.90

Calculations:

Direct material	$       421
Direct labor	$       286
Overheads	$       242
Total maufacturing cost	$       949
Number of units	10
Unit product cost	$   94.90

Note:

A B 1 Direct material =380+41 2 Direct labor =187+99 3 Overheads =(187/22*20)+(99/22*16) 4 Total maufacturing cost =SUM(B1:B3) 5 Number of units 10 6 Unit product cost =B4/B5