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 $375 $39 Direct labor $168 $84 1- What is the total manufacturing cost assigned to Job N-60? 2-2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Question 1:
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 | $375 | $39 |
| Direct labor | $168 | $84 |
1- What is the total
2-2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
| 1 | Total manufacuring cost | ||
| 2 | Unit product cosr | per unit |
Question2:
High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a
| Department | Molding | Painting |
| Direct labor hours | 35500 | 55100 |
| Machine hours | 88000 | 36000 |
| Fixed manufacturing overhead cost | 176000 | 506920 |
|
Variable manufacturing overhead per machine-hour |
2.80$ | - |
| Variable manufacturing overhead per direct labor-hour | - |
4.80$ |
Job 205 was started on August 1 and completed on August 10. The company's cost records
show the following information concerning the job:
| Department | Molding | Painting |
| Direct labor -hours | 82 | 129 |
| Machine-hours | 380 | 68 |
| Direct materials | 934$ | 1120$ |
| Direct labor cost | 680$ | 960$ |
Required:
1- Compute the predetermined overhead rate used during the year in the Molding Department and Painting Department (Round your answers to 2 decimal places.)
| Predetermined overhead rate | ||
| Molding Department | per MH | |
| Painting Department | per DLH |
2- Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
| Total overhead cost |
3- What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
| Department | |||
| Molding | Painting | Total | |
| Direct materials | |||
| Direct labor | |||
| Manufacturing overhead | |||
| Total cost |
4- If the job contained 50 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)
| Unit product cost | per unit |
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