Question
A company has identified the following overhead costs and cost drivers for the coming year: Budgeted Overhead Item Cost Driver Budgeted Cost Activity Level Machine
| A company has identified the following overhead costs and cost drivers for the coming year: |
|
|
|
| Budgeted |
| Overhead Item | Cost Driver | Budgeted Cost | Activity Level |
| Machine setup | Number of setups | $ 35,100 | 260 |
| Inspection | Number of inspections | 148,800 | 4,800 |
| Material handling | Number of material moves | 118,800 | 6,600 |
| Engineering | Engineering hours | 13,200 | 660 |
| Budgeted direct labor cost was $157,950 and budgeted direct material cost was $438,260. The following information was collected on three jobs that were completed during the year: |
|
| Job 101 |
| Job 102 |
| Job 103 |
| Direct materials | $ 6,250 |
| $ 11,250 |
| $ 7,250 |
| Direct labor | $ 2,700 |
| $ 2,700 |
| $ 5,400 |
| Units completed | 75 |
| 40 |
| 100 |
| Number of setups | 1 |
| 1 |
| 3 |
| Number of inspections | 15 |
| 8 |
| 10 |
| Number of material moves | 20 |
| 8 |
| 25 |
| Engineering hours | 8 |
| 40 |
| 5 |
| The company prices its products at 125% of cost. If the company uses activity-based costing (ABC), the price of each unit of Job 103 would be (Round your final answer to 2 decimal places.) |
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Accounting Best Practices
Authors: Steven M Bragg
7th Edition
1118404149, 9781118404140
