Practice question

sow\"? practice questions - Saved spas A B C D E F G H | 8 ABC Company produces custom machine parts on a job order basis. 9 Indirect manufacturing overhead was allocated using direct labor hour 10 at: $ 115.00 per direct labor hour 11 12 The owner wants to adopt an activity-based costing system. The 13 accounting team organizes the manufacturing process into six activities. 14 15 Activity Cost Driver Cost per Unit of Cost Driver 16 Material handling Number of parts $ 0.40 17 Milling Machine hours $ 20.00 18 Grinding Number of parts $ 0.80 19 Assembly Hours spent in assembly $ 5.00 20 Inspection Number of units produced $ 25.00 21 Shipping Number of order shipped $ 1,500.00 22 23 The accounting system collects the following information for Job Order 410. 24 25 Direct material cost $ 9,700.00 26 Direct labor cost $ 750.00 27 Number of direct labor hours 25 28 Number of parts 500 29 Number of machine hours 150 30 Number ofjob order shipped 1 31 Number of units 10 32 Number of hours in assembly 2 33 34 Required: 35 a) Compute the manufacturing cost PER UNIT for the job 36 using direct labor hour as the cost driver. 37 38 39 40 41 42 43 4.4 45 b) Compute the manufacturing cost PER UNIT forthe job 46 using Activity-based costing. 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 EEIV&EF\