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: Assembly Testing & Packaging Direct materials $ 380 $ 41 Direct labor $ 187 $ 99 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.)

Answer and Explanation:

The computation is shown below:

a. The total manufacturing cost is

Particulars           Assembly     Testing & Packing     Total

Direct materials    380                   41                           421

Direct labor           187                    99                          286

Overhead applied 170                   72                          242

Total                        737                  212                        949

Total manufacturing cost $949  

2    

Unit product cost$94.90 ($949 ÷ 10 per unit)

Workings:    

Overhead applied:    

Assembly170((187 ÷ 22) × 20)  

Testing & Packing72((99 ÷ 22) × 16)

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