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A local picnic table manufacturer has budgeted these overhead costs: Purchasing $ 7 0 , 0 0 0 , Handling materials 3 3 , 3
A local picnic table manufacturer has budgeted these overhead costs:
Purchasing $ Handling materials Machine setups Inspections and Utilities
They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown:
Cost Drivers are: Orders, Material moves, Machine setups, Number of inspections, and Square feet. Activities are, respectively:
Recent success has yielded an order for tables. Assume direct labor costs per hour of $ Determine how much the job would cost given the following activities:
Order units; Direct materials ; Machine hours ; Direct labor hours ; Number of purchase orders ; Number of material moves ; Number of machine setups ; Number of inspections ; Number of square feet occupied
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