Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:

Overhead Cost Pool	Budgeted Overhead Cost	Budgeted Level for Cost Driver	Overhead Cost Driver
Materials handling	$160,000	3,200 pounds	Weight of materials
Machine setup	13,200	390 setups	Number of setups
Machine repair	1,380	30,000 machine hours	Machine hours
Inspections	10,560	160 inspections	Number of inspections

Requirements for Job #971 which manufactured 4 units of product:

Direct labor	20 hours
Direct materials	130 pounds
Machine setup	30 setups
Machine hours	15,000 machine hours
Inspections	15 inspections

If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:

a. $1,020.

b. $990.

c. $6,400.

d. $3,460.

e. $1,600.

Answer rating: 100% (QA)

Answer 1 Using ABC Overhead cost assigned to Job971 for Machine setup is B... View the full answer