Question

rates in Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing &Packaging are $31.00 per direct labor-hour and $27.00 per direct labor-hour, respectively. The company's direct labor wage rate is $33.00 per hour. The following information pertains to Job N-60: 2700 pedrect hour The following informato Assembly $ 435 $ 462 Testing& Packaging $ 63 $165 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

Answer:

Direct labour hour required for job:

Assembly

=$462/$33.

=14 hours

Testing and packaging

=$165/$33

= 5 Hours

Now we will compute the total manufacturing cost as under

	Assembly	Testing	Total
Direct material(Given)	435	63	498
Direct Labor(Given)	462	165	627
Overhead (Labor hour * predetermined OH rate)	434 (14 DLH ×$31 per DLH)	135        (5 DLH ×$27 per DLH)	569
Total Manufacturing cost			1694

So Total Manufacturing cost = $1,694

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2

Calculation for the unit product cost

We have been given that Jon No: 60 has produced 10 units

unit product cost

=Total manufacturing cost / number of units

=1694 /10

=169.4 per unit