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Cledus Company has been using direct labor hours to allocate overhead, but is in the process of switching to an Activity Based Costing system and
| Cledus Company has been using direct labor hours to allocate overhead, but is in the process of switching to an Activity Based Costing system and has identified the following overhead costs and cost drivers for the upcoming year | ||||
| Overhead Item | Expected Costs | Cost Driver | Quantity | |
| Receiving Department Cost | $20,000 | Number of Purchase Orders | 800 | |
| Inspection cost | $270,000 | Number of Inspections | 3,000 | |
| Machine Cost | $58,750 | Machine Hours | 11,750 | |
| Engineering | $125,000 | Engineering hours | 500 | |
| Total | $473,750 | |||
| The following information was collected on three jobs that were completed in Q2 | ||||
| XLT | YRT | 78L | ||
| Direct materials | $24,000 | $12,000 | $38,000 | |
| Direct labor | $12,800 | $8,400 | $14,000 | |
| Units completed | 1200 | 800 | 1500 | |
| Direct labor-hours | 640 | 420 | 700 | |
| Machine Hours | 575 | 350 | 850 | |
| Engineering hours | 8 | 5 | 10 | |
| Number of Purchase Orders | 3 | 2 | 6 | |
| Number of Inspections | 8 | 3 | 10 | |
| For the year the company budgeted direct labor cost of $250,000, budgeted direct material cost of $880,000, and estimated labor hours of 10,000. | ||||
| REQUIRED: | ||||
| Determine the unit cost for each job using Activity Based Costing. (Round amounts to 2 decimal places.) | ||||
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