Question: Job 25AX required $5,000 for direct materials, $2,000 for direct labor, 200 direct labor hours, 100 machine hours, two setups, and three design changes. The
Job 25AX required $5,000 for direct materials, $2,000 for direct labor, 200 direct labor hours, 100 machine hours, two setups, and three design changes. The cost pools and overhead rates for each pool follow:
Cost Pool Overhead Rate
Assembly support $5/direct labor hour
Machining support $10/machine hour
Machine setups $250/setup
Design changes$500/design change
Determine the cost of Job 25AX.
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