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Cornwell Products has adopted an ABC costing system to allocate its overhead costs. The following manufacturing activities and cost drivers have been identified: Activity Machine
Cornwell Products has adopted an ABC costing system to allocate its overhead costs. The following manufacturing activities and cost drivers have been identified: Activity Machine setup Machining Polishing Quality control Facility-level costs Total overhead costs Estimated OH Costs $180,000 $1,050,000 $100,000 $320,000 $150,000 $1,800,000 Esimated amount of allocation base 2000 setups 12,000 machine hours 5,000 polishing cloths 4,000 test runs 50,000 DL hours The job cost record for Job #804 revealed the following Direct material costs: $1,250 Direct labor. 12 hours at a wage rate of $30/hr 1 machine setup 6 machine hours 4 polishing clothes 3 quaity control test runs What is total allocated overhead for Job #8042
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