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A company has identified the following overhead costs and cost drivers for the coming year: Budgeted Cost $ 9,100 74,700 Budgeted Activity Level 130 4,150
A company has identified the following overhead costs and cost drivers for the coming year: Budgeted Cost $ 9,100 74,700 Budgeted Activity Level 130 4,150 Overhead Item Machine setup Inspection Material handling Engineering Cost Driver Number of setups Number of inspections Number of material moves Engineering hours 58,300 5,300 15,900 530 Budgeted direct labor cost was $85,000 and budgeted direct material cost was $240,000. The following information was collected on three jobs that were completed during the year: Direct materials Job 101 Job 102 Job 103 $ 2,750||$ 7,750 $ 3,750 $ 1,300 $ 1,300||$ 2,600 50 | 25 | 150 Direct labor Units completed Number of setups Number of inspections Number of material moves Engineering hours 105 | 15 5 1 5 25 | 15 40 If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101? Multiple Choice o O S2,750. o $1,090. o 2,026. o 5565. $565
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