Question
Bienvenue, Inc., has identified the following budgeted overhead cost pools and activity drivers for next year: Activity Cost Pool Activity Driver Driver Quantity Setup $100,000
Bienvenue, Inc., has identified the following budgeted overhead cost pools and activity drivers for next year:
Activity | Cost Pool | Activity Driver | Driver Quantity |
Setup | $100,000 | Number of setups | 500 |
Order Fulfillment | $40,000 | Number of orders | 3,200 |
Maintenance | $200,000 | Machine hours | 4,000 |
Power | $20,000 | Kilowatt hours | 80,000 |
The following two jobs are completed during the year:
| Job CC | Job DD |
Direct materials | $375 | $1,000 |
Direct labor | $350 | $1,200 |
Units as part of job | 100 | 160 |
Direct labor hours | 50 | 80 |
Number of setups | 1 | 4 |
Number of orders | 4 | 5 |
Machine hours | 20 | 25 |
Kilowatt hours | 30 | 50 |
The company budgets 4,000 direct labor hours. Using job-order costing, what is the unit cost for Job CC (rounded to cents, if needed)?
(use direct labor hours as the cost driver, and assume none of the overhead costs listed are SG&A costs).
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