Salari Industries, a small, family- run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year:

During May, John and Allison Salari machined and assembled Job 557. John worked a total of 12 hours on the job, while Allison worked 4 hours on the job. John is paid a $ 25 per hour wage rate, while Allison is paid $ 28 per hour because of her additional experience level. Direct materials requisitioned for Job 557 totaled $ 1,250. The following additional information was collected on Job 557: the job required 2 machine setups, 4 machine hours, and 3 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.......................................................................    $ ?

Transcribed Image Text:

Estimated Total Usage of Cost Driver 2,900 setups 4,800 machine hours 4,400 tests run Estimated Total Manufacturing Overhead Costs $159,500 $720,000 Activity Machine setup.. Machining.. Quality control.. ............... $264,000