Question: pleaae help me with this problem After preparing the budget for the next year, management at Fun4U Inc. expects the following overhead costs (the cost
After preparing the budget for the next year, management at Fun4U Inc. expects the following overhead costs (the cost driver for each overhead cost pool is also shown): Activity Maintenance Materials receiving Machine setups Inspection I Total Cost $50,000 $120,000 $30,000 $20,000 Cost Driver Machine hours Shipments received # of setups # of inspections The expected activity for the year for various cost drivers is: Direct Labor Hours 30,000 Machine-hours 10,000 Shipments Received 150 Setups 300 Quality inspections 100 The company is considering accepting a significant production contract. Estimates for the contract are as follows: Direct materials Direct labor (5,000 hours) Number of material shipments received Number of inspections Number of setups Number of machine-hours $50,000 $75,000 6 5 12 1,000 1. What amount of overhead would be allocated to the contract if a company-wide rate based on direct labor hours were used? (Round all per-unit costs to nearest cent.)
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