Calculate the Cost of an EGG - Using Volume Based Job Order Costing and Activity Based Costing (Job cost sheets are VERY helpful!!)

Thank you in advance!

The Cholesterol Company is reexamining its pricing based upon a recent report from a consultant. Currently, the company uses a volume based pricing system with direct labor hours as the cost driver. They are uncomfortable with a volume-based system because of their behavioral consequences. Accordingly, they are considering switching to either an activity based costing system or a volume based system using machine hours as the cost driver. The company produces VERY expensive jeweled eggs. An analysis of cost pools produced the information below. Expected Annual Costs $100,000 Cost Driver Level of Cost Driver line Machine related mh hrs 20,000 hours costs Material handling Engineering and technology service Quality control $100,000 $100,000 cups of mix 50,000 cups # prts 100,000 parts $16,000 Machine setup $50,000 Other overhead costs $160,000 direct labor 8,000 hours hours # of setups 100 setups direct labor $80,000 direct labor dollars dollars Total $526,000 The EGG is produced in batches of 100. The Batch ticket for the EGG shows the following: Batch Ticket for Batch Number 333 Labor hours 600 hours at $10 per hour Raw materials 1,000 cups of mix at $1 per cup Machine hours 250 hours Parts used 150 parts Setups 3 setups required Assignment Respond to the following. Show and label all of your work, identifying all portions of the cost. Remember to compute the entire product cost of one EGG. 1. Compute the cost of one EGG using machine hours to allocated manufacturing overhead. 2. Compute the cost of one EGG using activity based costing to allocate the overhead. 3. Upload you excel spreadsheet for Part 2- ABC Note: Item #3must be in excel and in good form! Expected Annual Costs Cost Driver Level of Cost Driver Pool Rate Level of Cost Driver Assigned Overhead Cost mh hrs 20,000 hours Machine related $100,000 costs Material handling $100,000 cups of mix 50,000 cups $100,000 #prts 100,000 parts Engineering and technology service Quality control $16,000 8,000 hours direct labor hours Machine setup Other overhead cost $50,000 $160,000 # of setups 100 setups direct $80,000 direct labor labor dollars dollars Total $526,000