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Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $12.00 per direct labor-hour and $8.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $15.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 345 $ 27 Direct labor $ 75 $ 15 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.)
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $12.00 per direct labor-hour and $8.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $15.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials $ 345 $ 27 Direct labor $ 75 $ 15 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.)
Giving the following information:Assembly:Predetermined overhead rate= $12 per direct labor hourDirect materials= $345Direct labor= $75Testing & Packaging:Predetermined overhead rate= $8 per direct labor hourDirect materials= $27Direct labor= $15Direct labor rate= $15 per hourFirst, we need to allocate costs based on actual direct labor hours worked:Assembly:Number of direct labor hours= 75 / 15= 5 hoursTesting & Packaging:Number of direct labor hours= 15 / 15= 1 hourAllocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation baseAssembly:Allocated MOH= 12*5= $60Testing & Packaging:Allocated MOH= 8*1 = $8Now, we can calculate the total manufacturing cost of Job N-60Assembly:Manufacturing cost= 345 + 75 + 60Total manufacturing cost= $480Testing & Packaging:Manufacturing cost=27 + 15 + 8= $50Total manufacturing cost= 480 + 50Total manufacturing cost= $530Finally, the unitary cost:Unitary cost= total cost / number of unitsUnitary cost= 530 / 10Unitary cost= $53...