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Blue Manufacturing has identified the following overhead costs and cost drivers for the current period. Blue produces customized products that move through several different processes.
Blue Manufacturing has identified the following overhead costs and cost drivers for the current period. Blue produces customized products that move through several different processes. Materials and intermediate products are moved among several different work stations. Custom features are designed by engineers. Activity Cost Driver Machine setup Number of setups Material handling Number of times materials are moved Product design Design hours Inspection Number of inspections Total cost Estimated Cost $ 81,600 360,000 182,000 300,000 $ 923,600 Estimated Activity Level 680 18,000 2,600 12,000 Information for three of the jobs completed during the period follows: Job 42 Job 43 Job 44 Direct materials $ 11,000 $24,000 $ 12,000 Direct labour $ 3,200 $ 4,000 $ 6,000 Units completed 400 100 320 Number of setups 2 4 10 Number of materials moves 60 20 190 Number of inspections 40 20 80 Number of design hours 20 100 20 x Your answer is incorrect. Try again. If the company uses ABC, how much overhead cost should be assigned to Job 42? Overhead cost 4740 X Your answer is incorrect. Try again. If the company uses ABC, calculate the cost per unit for Job 43. (Round answer to 2 decimal places, e.g. 52.75.) Cost per unit 327.80
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