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 $ 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 If the company uses traditional costing and allocates overhead using direct labor cost, how much overhead cost should be assigned to Job 101?
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