Wedge Industries, a family-run small manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year:
Activity Estimated Total
............................................................... Manufacturing Estimated Total
............................................................... Overhead Costs Usage of Cost Driver
Machine setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,450................3,000 setups
Machining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $999,900.......5,000 machine hours
Quality control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $339,700..............4,500 tests run
During May, Jim and Driscilla Wedge machined and assembled Job 557. Jim worked a total of 9 hours on the job, while Driscilla worked 7 hours on the job. Jim is paid a $25 per hour wage rate, while Driscilla is paid $32 per hour because of her additional experience level. Direct materials requisitioned for Job 557 totaled $1,350. The following additional information was collected on Job 557: the job required 2 machine setups, 5 machine hours, and 2 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ?