Question
Determining job costs using activity-based costing. Job 007 requires $10,000 of direct materials, $4,000 of direct labor, 400 tons of material, 200 machine hours, two
Determining job costs using activity-based costing.
Job 007 requires $10,000 of direct materials, $4,000 of direct labor, 400 tons of material, 200 machine hours, two setups, ten inspection hours, and one design change. The manufacturing overhead cost pools and overhead rates in each pool follow:
Cost Pool/Overhead Rate: Material handling......$20/ton of material Machine usage.........$40/machine hour Machine setups........$1,000/setup Design changes........$2,000/design change Inspection.................$50/inspection hour
Instructions:Determine the cost of Job 007.
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