Question: E4-12 Determining job costs, using the ABC methodJob 25AX required $5,000 for direct materials, $2,000 for directlabor, 200 direct labor hours, 100 machine hours, two

E4-12

Determining job costs, using the ABC methodJob 25AX required $5,000 for direct materials, $2,000 for directlabor, 200 direct labor hours, 100 machine hours, two setups, andthree design changes. The cost pools and overhead rates for eachpool follow:Cost Pool Overhead RateAssembly support $5/direct labor hourMachining support $10/machine hourMachine setups $250/setupDesign changes $500/design changeDetermine the cost of Job 25AX using the ABC method.

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