A local picnic table manufacturer has budgeted these overhead costs:

Purchasing	$88,000
Handling Materials	33,500
Machine Setups	75,200
Inspections	30,000
Utilities	42,500

They are considering adopting ABC costing and have estimated the cost drivers for each pool as shown:

Cost Driver	Activity
Orders	800
Material Moves	1,340
Machine Setups	16,000
Number of Inspections	6,000
Square Feet	170,000

Recent success has yielded an order for 1,100 tables. Assume direct labor costs per hour of $15.

	Activity
Order, Units	1,100
Direct Materials	112,600
Machine Hours	15,300
Direct Labor Hours	5,300
Number of Purchase Orders	70
Number of Material Moves	850
Number of Machine Setups	100
Number of Inspections	400
Number of Square Feet Occupied	7,000

Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to the nearest whole number.

	Cost Assigned
Direct Materials		$
Direct Labor
Number of Material Moves
Number of Machine Setups
Number of Inspections
Number of Square Feet Occupied
Total Order Cost		$

Answer rating: 100% (QA)

Determine how much the job would cost given the following activities Do ... View the full answer