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Hamilton Ltd manufactures components ABC. The product uses two overhead activities, with the following expected costs and activity driver quantity information: Machining $2,500 50 machine
Hamilton Ltd manufactures components ABC. The product uses two overhead activities, with the following expected costs and activity driver quantity information:
Machining | $2,500 | 50 machine hours |
Setting up equipment | $26,000 | 200 set up hours |
The company received a job order of 15,000 units of component ABC from a customer that has the following production requirements:
Direct materials | $300,000 |
Direct labour | $100,000 |
Set-up hours | 1800 |
Machine hours | 1500 |
Calculate the overhead cost for the job using activity-based costing.
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