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12 A Thurman Brothers Construction manufactures and installs standard and custom-made cabinetry for residental homes. Last year the company incurred $668,340 in overhead costs when
12 A Thurman Brothers Construction manufactures and installs standard and custom-made cabinetry for residental homes. Last year the company incurred $668,340 in overhead costs when a total of 10 000 direct labour hours were incurred After implementing activ based costing (ABC) the company's accountant identified the following related information Proportion of Activity Allocation Base Overhead Cost Material delivery and handling Number of deliveries (100-20.25-8 Inspections Number of inspections 25% Supervision Hours of supervisor time 20 Purchasing Number of purchase orders 13% The number of activities for standard and custore-made cabinets is as blow Number of deliveries Number of inspections Standard tra 700 005 009 08 t 400 Mac anas A The number of activities for standard and custom-made cabinets is as follows Number of deliveries Number of inspections Hours of supervisor time Number of purchase orders 800 Standard Custom-made 500 700 600 400 1000 2000 314 During the past year, Thurman accepted a customer order for a set of custom-made cabinets that would require the following Direct labour hours Number of deliveries Number of inspections Hours of supervisor time Number of purchase orders MacBook Pro Canvas A BEB During the past year, Thurman accepted a customer of Direct labour hours Number of deliveries Number of inspections 5 2 Hours of supervisor time Number of purchase orders 12 A Required: Using activity-based costing (ABC), what would be the total overhead costs applied in Purchasing Activity for this job? **IMPORTANT**** rt up to 2 decimal places after the point You should put 12345.67 instead of 17 for this question 45
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