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 $ 25,300 220 Inspection Number of inspections 124,200 4,600 Material handling Number of material moves 99,200 6,200 Engineering Engineering hours 12,400 620 Budgeted direct labor cost was $220,000 and budgeted direct material cost was $620,000. The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials $ 5,250 $ 10,250 $ 6,250 Direct labor $ 2,300 $ 2,300 $ 4,600 Units completed 50 25 150 Number of setups 1 2 2 Number of inspections 10 5 15 Number of material moves 15 5 40 Engineering hours 5 25 8 If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101? -------------------------------------------------- Terri Martin, CPA provides bookkeeping and tax services to her clients. She charges a fee of $86 per hour for bookkeeping and $129 per hour for tax services. Martin estimates the following costs for the upcoming year: Office supplies $21,200 Computer fees 29,200 Secretary's salary 43,000 Rent 21,900 $115,300 Operating profits declined last year and Ms. Martin has decided to use activity-based costing (ABC) procedures to evaluate her hourly fees. She gathered the following information from last year's records: Activity Levels Activity Cost Driver Bookkeeping Tax Services Office supplies Hours billed 1,200 800 Computer fees Computer hours used 400 600 Secretar's salary Number of clients 16 84 Rent Types of services offered 1 1 What is the total cost allocated to the bookkeeping services using activity-based costing? ---------------------------------------------------------- Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $5 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Department C has $13,200 in traceable overhead. Diane is the department manager of Department D which manufactures Product X. Department D has $11,250 in traceable overhead. The product costs (per case of 24 bottles) and other information are as follows: Products J P X Direct materials $160.00 $ 115.00 $77.00 Direct labor 67.00 50.40 19.00 Overhead 32.00 22.00 21.00 $259.00 $187.40 $117.00 Machine hours (per case) 4 2 3 Number of cases (per year) 300 500 600 If Smelly changes its overhead allocation to departmental rates, what is the product cost per case for Product X assuming Departments C and D use direct labor hours and machine hours as their respective allocation bases? ------------------------------------------------------------------------------------------- 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 $ 27,600 230 Inspection Number of inspections 130,200 4,650 Material handling Number of material moves 100,800 6,300 Engineering Engineering hours 12,600 630 Budgeted direct labor cost was $135,600 and budgeted direct material cost was $381,680. The following information was collected on three jobs that were completed during the year: Job 101 Job 102 Job 103 Direct materials $ 5,500 $ 10,500 $ 6,500 Direct labor $ 2,400 $ 2,400 $ 4,800 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.) --------------------------------------------------------- The Muskego National Bank is considering either a bankwide overhead rate or department overhead rates to allocate $240,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Department DLH Loans Processed Direct Costs Consumer 7,500 300 $136,000 Commercial 5,000 75 $144,000 If Muskego uses a bankwide rate based on the number of loans processed, what would be the total costs for the Commercial Department