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 hour. The following information pertains to Job N-60: Testing & Packaging $41 $99 Assembly $380 $187 Direct materials Direct labor 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:

Assembly:

= $187 / $22

= 8.5

Testing & Packing:

= $99 / $22

= 4.5

1.

Total manufacturing costs:

= $380 + $41 + $187 + $99 + ($20 X 8.5) + ($16 X 4.5)

= $949

2.

Unit product cost:

= $949 / 10

= $94.90