manufacturer costs: Purchasing Handling materials Machine setups Inspections Utilities Cost Driver Orders Material moves Machine setups...

  

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manufacturer costs: Purchasing Handling materials Machine setups Inspections Utilities Cost Driver Orders Material moves Machine setups Number of inspections Square feet $70,000 31,333 70,500 25.500 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Order (units) Direct materials Machine hours A local picnic table has budgeted these overhead Activity 700 1,334 15,000 5.000 180,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given the following activities: Direct labor hours Number of purchase orders Number of material moves Number of machine setups Number of inspections Number of square feet occupied Activity 1,000 112,700 15,200 5,300 60 800 100 450 8,000 46.3 SLO 6.2 16 171 18 19 Purchasing Handling materials Machine setups Inspections Utilities Estimated Overhead $ 70,000.00 33,350.00 70,500.00 25,500.00 45,000.00 es is e $ $ $ Cost Driver Activity Rate manufacturer costs: Purchasing Handling materials Machine setups Inspections Utilities Cost Driver Orders Material moves Machine setups Number of inspections Square feet $70,000 31,333 70,500 25.500 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Order (units) Direct materials Machine hours A local picnic table has budgeted these overhead Activity 700 1,334 15,000 5.000 180,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given the following activities: Direct labor hours Number of purchase orders Number of material moves Number of machine setups Number of inspections Number of square feet occupied Activity 1,000 112,700 15,200 5,300 60 800 100 450 8,000 46.3 SLO 6.2 16 171 18 19 Purchasing Handling materials Machine setups Inspections Utilities Estimated Overhead $ 70,000.00 33,350.00 70,500.00 25,500.00 45,000.00 es is e $ $ $ Cost Driver Activity Rate

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Calculate the overhead costs using activitybased costing ABC First lets calculate the activity rates for each cost pool Purchasing Activity Rate Purch... View the full answer