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CH6 Q4 A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting ABC costing and have estimated the cost drivers for
CH6 Q4
A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Recent success has yielded an order for 1,100 tables. Assume direct labor costs per hour of $20. \begin{tabular}{lr} & Activity \\ \hline Order, Units & 1,100 \\ Direct Materials & 112,800 \\ Machine Hours & 15,200 \\ Direct Labor Hours & 5,300 \\ Number of Purchase Orders & 50 \\ Number of Material Moves & 850 \\ Number of Machine Setups & 90 \\ Number of Inspections & 450 \\ Number of Square Feet Occupied & 8,000 \end{tabular} Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Direct Materials Direct Labor Number of Material Moves Number of Machine Setups Number of Inspections Number of Square Feet Occupied Total Order CostStep by Step Solution
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