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Abitibi plant uses activity-based costing. It has two categories of overhead: machine maintenance and inspection. Machine maintenance costs vary with machine hours and inspection costs
Abitibi plant uses activity-based costing. It has two categories of overhead: machine maintenance and inspection. Machine maintenance costs vary with machine hours and inspection costs vary with the number of inspections. Costs expected for these activities and the estimated corresponding cost driver levels are as follows: Estimated total cost Estimated total cost driver Machine Maintenance (machine hours) 850000 50000 machine hours Inspection (number of inspections) 350000 3500 inspections The following
following information was provided to you regarding Job 324: | |||||
Cost of direct materials used (in $) | 2000 | ||||
Cost of direct labour used (in $) | 4800 | ||||
Number of machine hours used | 1200 | ||||
Number of inspections used | 12 | ||||
The total cost of job 324 based on activity-based costing is: |
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