3. Bergman Industries has the following estimates for their indirect manufacturing costs and activity levels Activity...

Transcribed Image Text:

3. Bergman Industries has the following estimates for their indirect manufacturing costs and activity levels Activity Setup Scheduling Engineering Supervision Maintenance Total Job 845 had the following: Direct materials Direct Labor Setup hours Scheduling Machine hours used Engineering Cost $144,000 $60,000 $120,000 $56,000 $84,000 $464,000 Driver 1,000 setup hours 400 batches 60 change orders 2,000 direct labor hours 12,000 machine hours $7,000 $1,000 (40 hours) 5 hours 1 batch 30 hours 3 change orders a. Find the product cost for Batch 845 using a single cost driver, machine hours, to assign overhead to the batch. b. Find the product cost for Batch 845 using all five cost drivers to assign overhead. 3. Bergman Industries has the following estimates for their indirect manufacturing costs and activity levels Activity Setup Scheduling Engineering Supervision Maintenance Total Job 845 had the following: Direct materials Direct Labor Setup hours Scheduling Machine hours used Engineering Cost $144,000 $60,000 $120,000 $56,000 $84,000 $464,000 Driver 1,000 setup hours 400 batches 60 change orders 2,000 direct labor hours 12,000 machine hours $7,000 $1,000 (40 hours) 5 hours 1 batch 30 hours 3 change orders a. Find the product cost for Batch 845 using a single cost driver, machine hours, to assign overhead to the batch. b. Find the product cost for Batch 845 using all five cost drivers to assign overhead.

Answer rating: 100% (QA)

a To find the product cost for Batch 845 using a single cost driver machine hours to assign overhead ... View the full answer