Neal Co. manufactures computer workstations. The company's three activities and their overhead cost drivers follow.

Job 101's actual activity usage along with a partial customer profitability report follow.

Required
1. Compute activity rates using activity-based costing.
2. Use the results from part 1 to allocate overhead cost to Job 101.
3. Complete the profitability report for Job 101.

Transcribed Image Text:

Activity Fabrication..... Assembly. Inspection. Budgeted Cost $80,000 96,000 72,000 Activity Cost Driver Machine hours Direct labor hours Units inspected Budgeted Activity Usage 1,600 machine hours 2,000 direct labor hours 6,000 units