6:49 O practice questions - Read-only OHE . . . Read Only - You can't save changes to this file. V V B C D E G H I J ABC Company produces custom machine parts on a job order basis. Indirect manufacturing overhead was allocated using direct labor hour = 10 at: $ 115.00 per direct labor hour 11 12 The owner wants to adopt an activity-based costing system. The 13 accounting team organizes the manufacturing process into six activities. 14 15 Activity Cost Driver Cost per Unit of Cost Driver 16 Material handling Number of parts 0.40 17 Milling Machine hours 20.00 18 Grinding Number of parts 0.80 19 Assembly Hours spent in assembly 5.00 20 Inspection Number of units produced 25.00 21 Shipping Number of order shipped 1,500.00 22 23 The accounting system collects the following information for Job Order 410. 24 25 Direct material cost 9,700.00 26 Direct labor cost 750.00 27 Number of direct labor hours 25 28 Number of parts 500 29 Number of machine hours 150 30 Number of job order shipped 31 Number of units 10 32 Number of hours in assembly 2 33 34 Required: 35 a) Compute the manufacturing cost PER UNIT for the job 36 using direct labor hour as the cost driver. 37 38 39 40 41 42 43 44 45 b ) Compute the manufacturing cost PER UNIT for the job 46 using Activity-based costing 47 48 49 50 51 52 53 54 55 56 58 59 60 61 62 63 64 65 66 67 68 69 70 71 BY O O