Kestral Manufacturing identified the following overhead costs and cost drivers for the current period. Kestral produces customized products that move through several different processes. Materials and intermediate products are moved among several different work stations. Custom features are designed by engineers.

Information for three of the jobs completed during the period follows.

A. If the company uses ABC, how much overhead cost should be assigned to Job 42?
B. If the company uses ABC, calculate the cost per unit for Job 43.
C. Kestral would like to reduce the cost of its overhead activities. Describe non-value-added activities and explain why reducing these specific activities would also reducecost.

  • CreatedJanuary 26, 2015
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