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Dickerson Industries, a small, family-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been
Dickerson Industries, a small, family-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: (Click the icon to view activities, total costs, and cost drivers.) During May, Larry and Civilla Dickerson machined and assembled Job 456. Larry worked a total of 11 hours on the job, while Civilla worked 7 hours on the job. Larry is paid a $25 per hour wage rate, while Civilla is paid $32 per hour because of her additional experience level. Direct materials requisitioned for Job 456 totaled $1,350. The following additional information was collected on Job 456: The job required 1 machine setup, 5 machine hours, and 2 quality control tests. 1. Compute the activity cost allocation rates for the year. 2. Complete the job cost record for Job 456. Machining 704,000 Quality control 253,000 i Data Table 2. Complete the following job cost record for Job 456. Job Cost Record JOB 456 Manufacturing Costs 1350 .......... Direct material Direct labor Estimated Total Manufacturing Overhead Costs 158,100 784,000 253,000 Activity Machine setup Machining ........ Quality control ....... A Estimated Total Usage of Cost Driver 3,100 setups 4,900 machine hours 4,600 tests run A Manufacturing overhead .... A Total job cost Enter any number in the edit fields and then click Check Answ Print Done
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