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 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.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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

 

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.)

Expert Solution
Step 1 Introduction

The manufacturing costs include the costs that are incurred to get the product finished during the period. The manufacturing costs comprises of direct materials, direct labor and overhead applied. The overhead applied is the cost of manufacturing overhead calculated on the basis of predetermined overhead rate.

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