ABC and Job Costing Working with Unknowns North Company designs and manufactures machines that facilitate DNA sequencing. Depending on the intended purpose of each machine and its functions, each machine is likely to be unique. The job costing system in its Norfolk plant has five activity cost pools, in addition to direct materials and direct labor. Job TPY2306 requires 1,000 printed-circuit boards. The cost per board that passes the final inspection is $240. On average, only 50% of the completed units pass the final inspection. The prime costs per completed board include $25 for direct materials and $5 for direct labor. Information pertaining to manufacturing overhead for printed-circuit boards follows:

Activity

Cost Driver

Activity Driver Rate

Activity Consumption per Board

Factory Overhead per Board

Axial insertion

Number of axial insertions

$0.20

30

$ A?

Hardware insertion

Number of hardware insertions

2.00

B?

37.00

Hand load

Boothroyd time

C?

5

35.50

Masking

Number of points masked

0.12

100

D?

Final test

Test time

E?

10

6.00