Fickel Company has two manufacturing departmentsAssembly and

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 Direct naterials Direct labor Assembly 375 168 Packaging 39 s 84 sopped 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) Total manufacturing cost 2. Unit product cost per unit

Solution

Answer to Part 1.

Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Manufacturing Overhead = Predetermined Overhead Rate * Direct Labor Hours

Calculation of Total Manufacturing Cost of Assembly Department:
Direct Labor Hours = Total Direct Labor / Direct Labor Wage rate
Direct Labor Hours = 168 / 21
Direct Labor Hours = 8 DLH

Manufacturing Overhead = $19.00 * 8
Manufacturing Overhead = $152

Total Manufacturing Cost assigned to Assembly Department =$375 + $168 + $152
Total Manufacturing Cost assigned to Assembly Department = $695

Calculation of Total Manufacturing Cost of Testing and Packaging Department:
Direct Labor Hours = Total Direct Labor / Direct Labor Wage rate
Direct Labor Hours = 84 / 21
Direct Labor Hours = 4 DLH

Manufacturing Overhead = $15.00 * 4
Manufacturing Overhead = $60

Total Manufacturing Cost assigned to Assembly Department =$39 + $84 + $60
Total Manufacturing Cost assigned to Assembly Department = $183

Total Manufacturing Cost assigned to Job N-60 = $695 + $183
Total Manufacturing Cost assigned to Job N-60 = $878

Answer to Part 2.

Unit Product Cost = Total Manufacturing Cost / No. of Units
Unit Product Cost = 878 / 10
Unit Product Cost = $87.80 per Unit