Please complete the following problems. Make certain to show all of your work. I. Calculate a Job Cost Using Activity Based Costing (ABC) (20 points) Berg Industries, a family-run small manufacturer, has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: Activity Estimated Total Manufacturing Overhead Cost Estimated Total Usage of Cost Driver

Machine setup

$ 150,000 3,000 setups

Machining

1,000,000 5,000 machine hours

Quality control

337,500 4,500 test runs

Total $ 1,487,500

During May, Evan and Stephanie Berg machined and assembled Job 624. Evan worked a total of 10 hours on the job, while Stephanie worked 5 hours on the job. Evan is paid a $25 per hour wage rate, while Stephanie is paid $30 per hour because of her additional experience level. Direct materials for the job totaled $1,050. Additionally, the job requires 1 machine setup, 5 machine hours and 2 quality control test.

Requirements

1. Compute the cost allocation rate for each activity for the year.

Machine setup = per setup

Machining = per machine hour

Quality control = per test run

2. Compute the manufacturing overhead cost that should be assigned to Job 624.

Machine setup =

Machining =

Quality control =

total manufacturing overhead cost

3. Complete the following job cost record for Job 624.

Job Cost Record Job 624 Manufacturing Costs

Direct Materials

Direct Labor

Manufacturing Overhead ..

Total job cost