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i Data Table The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,010. The Job Cost Record also
i Data Table The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,010. The Job Cost Record also showed that direct labor for this job totaled 12 hours at a wage rate of $22 per hour. Other data collected on the resources used by Job #624 included: Requirements Activity Total estimated MOH costs related to activity 96,000 Machine setup Total estimated amount of allocation base activity 2,400 setups 4,000 machine hours 11,000 polishing cloths 4,500 tests run Machining 580,000 $ 99,000 Polishing Quality control 202,500 40,000 $ 1. Calculate the activity cost allocation rate for each of the five pools listed in the table. 2. Calculate the total cost of Job #624 (use an ABC costing system). 3. Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? 4. Assume that Holder 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? Facility-level costs 20,000 DL hours S 1.017.500 Total manu i Data Table Print Done 1 machine setup required 6 machine hours 3 polishing cloths 3 quality control tests run
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