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Gilardi 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
Gilardi 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: Activity Est. Total MOH Costs Est. Total Usage of Cost Driver Machine setup $ 138,000 3,000 setups Machining $ 900,000 5,000 machine hours Quality control $ 408,500 4,300 tests run During May, Larry and Civilla machined and assembled Job 540. 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 $ 29 per hour because of her additional experience level. Direct materials requisitioned for Job 540 totaled $1,125. The following additional information was collected on Job 540: The job required 2 machine setup, 6 machine hours, and 2 quality control tests. Requirements: 1. Compute the activity cost allocation rates for the year. 2. Complete the job cost record for Job 540
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