Question

Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $19.00 per direct labor hour and $15.00 per direct labor-hour, respectively. The company's direct labor wage rate is $21.00 per hour. The following information pertains to Job N-60: Testing & Packaging $39 $84 Assembly $375 $168 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.) + nces 1 Total manufacturing cost 2. Unit product cost per unit

Answer 1

1	Total manufacturing cost	$878
2	Unit product cost	$87.80	Per unit
	Solutions:-
	Computation of the total direct labor-hours required for Job N-60
		Assembly	Testing & Packaging
	Direct labor cost (a)	$168.00	$84.00
	Direct labor wage rate per hour (b)	$21.00	$21.00
	Total direct labor hours (a) / (b)	8.00	4.00
	Total manufacturing cost assigned to Job N-60
		Assembly	Testing and packaging
	Direct materials ($375 + $39)		$414.00
	Direct labor ($168 + $84)		$252.00
	Assembly Department	$152.00
	($19 per DLH × 8.00DLHs)
	Testing & Packaging Department	$60.00	$212.00
	($15 per DLH × 4 DLHs)
	Total Manufacturing Cost		$878.00
	Computation of the unit product cost for Job N-60
	Total manufacturing cost (a)		$878.00
	Number of units in the job (b)		10.00
	Unit Product cost (a) / (b)		$87.80