Fickel Company has two manufacturing departments Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $28.00 per direct labor-hour and $24.00 per direct labor-hour, respectively. The company's direct labor wage rate is $30.00 per hour. The following information pertains to Job N-60:

Assembly Testing & Packaging
Direct materials $420 $57
Direct labor $375 $105
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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facundobuzzetti facundobuzzetti · Answer 1 · 2021-02-12T19:38:26+01:00

Answer:

Results are below.

Explanation:

First, we need to allocate overhead to Job N-60:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Direct labor hours:

Assembly= 375/30= 12.5

Testing & Packaging= 105/30= 3.5

Overhead:

Assembly= 12.5*28= $350

Testing & Packaging= 3.5*24= $84

Total= $434

Now, the total manufacturing cost:

Total cost= (420 + 57) + (375 + 105) + 434

Total cost= $1,391

Finally, the unitary cost:

Unitary cost= 1,391/10

Unitary cost= $139.1