Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5-29 Activity-based costing. The job-costing system at Shirley's Custom Framing has five indirect-cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company
5-29 Activity-based costing. The job-costing system at Shirley's Custom Framing has five indirect-cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs: Job 215, an order of 16 intricate personalized frames, and Job 325 , an order of six standard personalized frames. The controller wants you to compare overhead allocated under the current simple job-costing system and a newly designed activity-based job-costing system. Total budgeted costs in each indirect-cost pool and the budgeted quantity of each activity driver are as follows. Information related to Job 215 and Job 325 follows. Job 215 incurs more batch-level costs because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 325 . Using Machine Hours as a base, the overhead rate per machine hour is $ (use two decimal places) 1/1 point Using machine hours as a simple job costing method of allocation, overhead allocated to job 215 would be $ and to job 325$ (use two decimal places and commas to separate thousands). 0/2 points Using activity based costing, the overhead allocated to job 215 would be $ and the overhead allocated to job 325 would be $ (use two decimal places and separate 000 s with a comma)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started