Hooper Products has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified: E: (Click the icon to view the activity costs and drivers.) The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,030. The Job Cost Record also showed that direct labor for this job totaled 7 hours at a wage rate of $26 per hour. Other data collected on the resources used by Job #624 included: (Click the icon to view the other data.) Read the requirements. Requirement 1. Calculate the activity cost allocation rate for each of the five pools listed in the table. (Round the allocation rate to the nearest cent. Abbreviations used: DL = direct labor: MH = machine hour.) Activity cost allocation Total activity cost pool Total activity allocation base rate Machine setup 156,000 2,400 = $ 65.00 per setup $ Machining 340,000 $ 2,000 170.00 Polishing 15,000 5,000 = $ 3.00 Quality control 125,000 2,500 $ 50.00 11 per MH per cloth per test *** ? Chance from any list or enter any number in the input fields and then click Check Answer. 0 Data Table Activity Machine setup Machining Polishing Quality control Facility-level costs Total estimated MOH Total estimated amount of costs related to activity allocation base activity $ 156,000 2,400 setups $ 340,000 2,000 machine hours $ 15,000 5,000 polishing cloths $ 125,000 2,500 tests run $ 180,000 90,000 DL hours $ 816,000 Total manufacturing overhead (MOH) 3 Data Table s listed Jor: MH 2 machine setups required 4 machine hours 4 polishing cloths 3 quality control tests run tion ba: $ 65 Print Done $ 17 $ 3 LED Read the requirements. Facility level costs per DL $ 180,000 90,000 2.00 hour Requirement 2. Calculate the total cost of Job #624 (use an ABC costing system) Job Cost Record Manufacturing Costs JOB # 624 Manufacturing overhead allocated Direct materials 986 1,030 Direct labor 182 $ Total job cost $ 2,198 %E4-24A (similar to) Question Help Hooper Products has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified: (Click the icon to view the activity costs and drivers.) The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,030. The Job Cost Record also showed that direct labor for this job totaled 7 hours at a wage rate of $26 per hour. Other data collected on the resources used by Job #624 included: Click the icon to view the other data.) Read the requirements. The cost estimate based on ABC would provide a more accurate allocation of MOH than a plantwide rate because this cost estimate takes into account the specific resources used by each job. This information can be used to price jobs based on more accurate costs. Requirement 4. Assume that Hooper Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? Begin by calculating the plantwide overhead rate. First identify the formula used to compute the plantwide overhead rate, then compute the rate. (Round the rate to the nearest whole dollar.) Plantwide overhead rate 816000 ENG
