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Hamilton Manufacturing Company uses activity-based costing. The manufacturing overhead budget for the coming period is $1,053,000, consisting of the following: Cost Pool Supervision Machine usage
Hamilton Manufacturing Company uses activity-based costing. The manufacturing overhead budget for the coming period is $1,053,000, consisting of the following: Cost Pool Supervision Machine usage Machine setups Design changes Totals Budgeted Amount $ 320,000 420,000 187,000 126.000 $1.053.000 The potential allocation bases and their estimated amounts were as follows: Allocation Base Number of design changes Number of setups Machine hours Direct labour hours Budgeted Amount 35 110 6,000 10,000 A. Determine the manufacturing overhead rate for each cost pool, using the most apprate allocation base for each pool. B. Job 80130 required $45,000 for direct materials, $20,000 for direct labour, 2,000 direct labour hours, 800 machine hours, five setups, and four design changes. Determine the cost of Job 80130
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