Determining job costs, using activity- based costing Fabreeze Manufacturing Co. uses activity- based costing.

The factory overhead budget for the coming period is $ 500,000, consisting of the following:

Cost Pool Budgeted Amount Direct labor ........................$150,000

Machine support ................................................................$200,000

Machine setups ..................................................................$100,000

Design changes ....................................................................$50,000

Total ...................................................................................$500,000

The potential allocation bases and their estimated amounts were as follows:

Cost Pool Budgeted Amount

Number of design changes 50 .......................................50

Number of setups 200 .................................................200

Machine hours 10,000 .............................................10000

Direct labor hours 20,000 ........................................20000

1. Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool. (Use each allocation base only once.)

2. Job 2525 required $ 25,000 for direct materials, $ 10,000 for direct labor, 500 direct labor hours, 1,000 machine hours, five setups, and three design changes. Determine the cost of Job 2525.