Jarvis Makers Ltd. produces equipment used in the farming industry. There are three primary activities in the production of farming equipment for Jarvis: cutting, assembly, and finishing. The following table identified the two overhead capacity resources used by the three activities:

Capacity Resources Cost per Year Hours per year Capacity Cost Rate

Indirect Labour $400,000 20,000 $20,000

Machines $800,000 32,000 $25,000

The following table identifies the number of hours of each overhead resource that one hour of each activity consumes:

The following table identifies the number of hours of each overhead resource that one hour of each activity consumes:

Resource Hours Consumed Cutting Assembly Finishing

Indirect Labour Time 4.00 1.25 0.50

Machine Time 0.75 0.80 1.50

For example, each hour of cutting activity consumed 4 indirect labour hours and 0.75 hours of machine time.

The following table summarizes the number of hours of each activity consumed by recent equipment made for six customers:

Customer: A B C D E F

Hours of Cutting Activity 10.0 8.0 6.0 5.0 2.0 20.0

Hours of Assembly Activity 5.0 5.0 4.0 4.0 5.0 30.0

Hours of Finishing Activity 11.0 6.0 12.0 8.0 6.0 40.0

Using activity-based costing, what is the total number of indirect labour hours consumed by Customer F?

• 145.00 hours of the indirect labour resource
• None of the options provided
• 90.00 hours of the indirect labour resource
• 137.50 hours of the indirect labour resource
• 4.0 hours of the indirect labour resource

Please answer with full solutions. Thank you!

Jarvis Makers Ltd. produces equipment used in the farming industry. There are three primary activities in the production of farming equipment for Jarvis: cutting, assembly, and finishing. The following table identified the two overhead capacity resources used by the three activities: IS The following table identifies the number of hours of each overhead resource that one hour of each activity consumes: The following table identifies the number of hours of each overhead resource that one hour of each activitv consumes: R I N For example, each hour of cutting activity consumed 4 indirect labour hours and 0.75 hours of machine time. The following table summarizes the number of hours of each activity consumed by recent equipment made for six customers: Using activity-based costing, what is the total number of indirect labour hours consumed by Customer F? - 145.00 hours of the indirect labour resource - None of the options provided - 90.00 hours of the indirect labour resource - 137.50 hours of the indirect labour resource - 4.0 hours of the indirect labour resource