$1$

Compute a single plantwide overhead rate assuming the company allocates overhead cost based on $13,000$ direct labor hours.

Job $31$ used $320$ direct labor hours and Job $42$ used $640$ direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part $1.$

Compute an activity rate for each activity using activity$-$based costing.

Allocate overhead costs to Job $31$ and Job $42$ using activity$-$based costing.

$4$

points

$\backslash$table$[[,$Activity Usage$],[$Activity Cost Driver,Job $31,$Job $42],[$Direct labor hours $($DLH$),320,640],[$Engineering hours $($EH$),41,47],[$Machine hours $($MH$),40,56],[$Setups$,3,5]]$

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Compute a single plantwide overhead rate assuming the company allocates overhead cost based on $13,000$ direct labor hours.

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