Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $ 12,000 | 150 |
Inspection | Number of inspections | 85,000 | 4,250 |
Material handling | Number of material moves | 66,000 | 5,500 |
Engineering | Engineering hours | 11,000 | 550 |
Budgeted direct labor cost was $87,000 and budgeted direct material cost was $241,600. The following information was collected on three jobs that were completed during the year: |
Job 101 | Job 102 | Job 103 | |||
Direct materials | $ 3,250 | $ 8,250 | $ 4,250 | ||
Direct labor | $ 1,500 | $ 1,500 | $ 3,000 | ||
Units completed | 100 | 50 | 200 | ||
Number of setups | 1 | 2 | 4 | ||
Number of inspections | 20 | 10 | 30 | ||
Number of material moves | 30 | 10 | 50 | ||
Engineering hours | 10 | 50 | 10 |
The company prices its products at 140% 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.) |
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