Chapter 2, Problem 4E

EXERCISE 2−4 Computing Total Job Costs and Unit Product Costs Using Multiple Predetermined Overhead Rates LO2−4

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 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:

1. What is the total manufacturing cost assigned to Job N-60?
2. If Job N-60 consists of 10 units, what is the product cost for this job?