Question

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company’s direct labor wage rate is $20.00 per hour. The following information pertains to Job N-60:

Assembly Testing & Packaging
Direct materials $ 340 $ 25
Direct labor $ 180 $ 40
Required:
What is the total manufacturing cost assigned to Job N-60?
If Job N-60 consists of 10 units, what is its unit product cost?
Note: Round your answer to 2 decimal places.

Answer 1

To calculate the total manufacturing cost assigned to Job N-60, we need to determine the total costs incurred in the Assembly and Testing & Packaging departments, including direct materials, direct labor, and applied overhead.

### Step 1: Break down costs by department

#### Assembly Department:
- **Direct Materials**: $340
- **Direct Labor**: $180
- **Direct Labor Hours**: To find the direct labor hours, we divide the direct labor cost by the wage rate:
\[
\text{Direct Labor Hours in Assembly} = \frac{180}{20} = 9 \text{ hours}
\]
- **Applied Overhead in Assembly**:
\[
\text{Applied Overhead} = \text{Overhead Rate} \times \text{Direct Labor Hours} = 16.00 \times 9 = 144.00
\]
- **Total Cost in Assembly**:
\[
\text{Total Assembly Cost} = \text{Direct Materials} + \text{Direct Labor} + \text{Applied Overhead} = 340 + 180 + 144 = 664
\]

#### Testing & Packaging Department:
- **Direct Materials**: $25
- **Direct Labor**: $40
- **Direct Labor Hours**:
\[
\text{Direct Labor Hours in Testing & Packaging} = \frac{40}{20} = 2 \text{ hours}
\]
- **Applied Overhead in Testing & Packaging**:
\[
\text{Applied Overhead} = \text{Overhead Rate} \times \text{Direct Labor Hours} = 12.00 \times 2 = 24.00
\]
- **Total Cost in Testing & Packaging**:
\[
\text{Total Testing & Packaging Cost} = \text{Direct Materials} + \text{Direct Labor} + \text{Applied Overhead} = 25 + 40 + 24 = 89
\]

### Step 2: Calculate total manufacturing cost for Job N-60
\[
\text{Total Manufacturing Cost} = \text{Total Assembly Cost} + \text{Total Testing & Packaging Cost} = 664 + 89 = 753
\]

### Step 3: Calculate unit product cost
If Job N-60 consists of 10 units, we can find the unit product cost by dividing the total manufacturing cost by the number of units:
\[
\text{Unit Product Cost} = \frac{\text{Total Manufacturing Cost}}{\text{Number of Units}} = \frac{753}{10} = 75.30
\]

### Final Results:
- **Total Manufacturing Cost assigned to Job N-60**: $753
- **Unit Product Cost**: $75.30

So, the final answers are:
- Total Manufacturing Cost: **$753**
- Unit Product Cost: **$75.30**