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9 February, 17:40

Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $15.00 per direct labor-hour and $11.00 per direct labor-hour, respectively. The company's direct labor wage rate is $18.00 per hour. The following information pertains to Job N-60:

Assembly Testing & Packaging

Direct materials $360 $33

Direct labor $117 $45

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.)

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Answers (1)
  1. 9 February, 17:52
    0
    Instructions are listed below

    Explanation:

    Giving the following information:

    The predetermined overhead rate:

    Assembly and Testing = $15.00 per direct labor-hour

    Packaging = $11.00 per direct labor-hour

    The company's direct labor wage rate is $18.00 per hour.

    Job N-60:

    Assembly Testing & Packaging

    Direct materials $360 $33

    Direct labor $117 $45

    A) We need to use the following formula:

    total cost = direct material + direct labor + manufacturing overhead

    First, we need to determine the number of direct hours used:

    Assembly = 117/18 = 6.5 hours

    Packaging = 45/18 = 2.5 hours

    total cost = (360 + 33) + (117 + 45) + (6.5*15 + 2.5*11) = $680

    B)

    Unitary cost = 680/10 = $68
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