PA$7.$ LO $6\mathrm{.}3$ After grouping cost pools and estimating overhead and activities, Box Springs determined these rates:

Purchasing $($per order$)$

$$55$

Utilities $($per square foot$)$

$3$

Machine setups $($per machine hour$)$

$8$

Supervision $($per direct labor hour$)$

$5$

$$

It estimates there will be five orders in the next year, and those jobs will involve:

$$

Orders

$5$

Square feet

$200$

Machine hours

$50$

Direct labor hours

$35$

Direct materials

$$1,500$

Direct labor rate

$$25$

What is the total cost of the jobs?

Solution

Direct materials

$$

$$

Direct labor

$$

$$

Factory overhead

$$

$$

Purchasing

$$

$$

Utilities

$$

$$

Machine setups

$$

$$

Supervision

$$

$$

$$

$$