Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $32.00 per direct labor-hour and $28.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $34.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 440 $ 65 Direct labor $ 493 $ 187 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

Req a.
OH applied for each department
		Assembly	Testing and Packaging
Direct labour cost	493	187
Divide: Rate per DLH	34	34
DLH used		14.5	5.5
Multiply: OH rate per DLH	32	28
Overheads applied	464	154
Total Mnaufacturing cost
		Assembly	Test & Pack	Total
Direct Material	440	65	505
Direct labour cost	493	187	680
Overheads applied	464	154	618
Total Manufacturing cost	1397	406	1803
Total Manufacturing cost of Job N-60:	1803
Req b.
Total cost of Job		1803
Divide: Units produced	10
Unit product cost		180.3