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Jefferson Blush Manufacturing Inc. (the company) has three different categories of overhead. The overhead costs for each of the categories for the next year are
Jefferson Blush Manufacturing Inc. ("the company") has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows: Costs Cost Driver Expected Activity Materials handling $360,000 Material moves 18,000 Maintenance $550,000 Machine hours 55,000 Inspection $30,000 Inspections 10,000 Currently, the company applies overhead using a predetermined overhead rate based upon a budgeted direct labour hours of 80,000. The company has been asked to submit a bid on a proposed job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows: Direct materials $55,000 Direct labour $45,000 Number of direct labour hours 15,000 Number of material moves 50 Number of inspections Number of machine hours 3,000 180 Use the information provided to answer the following questions. Question 23 (1 point) If the company used activity based costing, calculate the total overhead cost that would be assigned for material handling to the job Question 24 point of the company used activity-based costing, calculate the total overhead cost that would be assigned for maintenance to the job Question 25 point) If the company used activity-based costing, calculate the total overhead cost that would be assigned for inspections to the job
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