Use the following information to answer Multiple Choice 2 and 3 (treat each independently).

Kruger company has identified the following cost drivers for the coming year.

Item Budgeted Overhead Cost Driver Budgeted Total Level Setup Cost $ 140,000 # of setups 4,000 Machine Cost 2,350,000 Kilowatt hours 500,000 Total overhead $2,490,000

Total Budgeted direct labour hours for the year (all jobs) is expected to be 124,500 hours.

2. Assume Kruger is using an Activity Based Costing system, One of the jobs Kruger finished in March was Job C-14. The information related to Job C-14 is presented below: Job C-14 actual cost Direct Material $ 950 Direct Labour $1,400 Units completed 250 # of setups 5 Kilowatt hours used 1,600 The per unit cost of Job C-14 is: A. $40.18 B. $74.48 C. $49.10 D. $30.78

3. Assume Kruger had been using a plantwide overhead allocation basis where they allocated manufacturing overhead based on direct labour hours. If the actual hours worked to complete all jobs were 128,000 hours and actual total manufacturing overhead bills paid had been $2,600,000, then Kruger would have which of the following:

A.$40,000 Overapplied Manufacturing Overhead B.$110,000 Overapplied Manufacturing Overhead C.$40,000 Underapplied Manufacturing Overhead D.$110,000 Underapplied Manufacturing Overhead