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 $14.00 per direct labor-hour and $10.00 per direct labor-hour, respectively. The company's direct labor wage rate is $17.00 per hour. The following information pertains to Job N-60: Direct materials Direct labor Assembly $355 $102 Testing & Packaging $31 $34 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

1st question:

Direct labour hours:

Assembly:

= $102 / $17

= 6

Testing & Packing:

= $34 / $17

= 2

1.

Total manufacturing costs:

= $355 + $31 + $102 + $34 + ($14 X 6) + ($10 X 2)

= $626

2.

Unit product cost:

= $626 / 10

= $62.60

2nd question:

a.

Total manufacturing costs:

= $29,370 + $11,000 + ($11,000 X 113%)

= $52,800

b.

Unit product cost:

= $52,800 / 1,600

= $33