Question

Salari Industries, a small, family- run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year:

.:.
During May, John and Allison Salari machined and assembled Job 557. John worked a total of 12 hours on the job, while Allison worked 4 hours on the job. John is paid a $ 25 per hour wage rate, while Allison is paid $ 28 per hour because of her additional experience level. Direct materials requisitioned for Job 557 totaled $ 1,250. The following additional information was collected on Job 557: the job required 2 machine setups, 4 machine hours, and 3 quality control tests.
1. Compute the activity cost allocation rates for the year.
2. Complete the following job cost record for Job 557:

Job Cost Record Job 557 Manufacturing Costs Direct materials........................................................................... ?
Direct labor.......................................................................... ?
Manufacturing overhead..................................................... ?
Total job cost....................................................................... $ ?



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  • CreatedAugust 27, 2014
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