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Kauler Industries, a family-run small manufacturer, has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have
Kauler Industries, a family-run small manufacturer, has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year: (Click the icon to view activities, total MOH costs, and cost drivers.) During May, Ron and Civilla Kauler machined and assembled Job 405 . Ron worked a total of 15 hours on the job, while Civilla worked 9 hours on the job. Ron is paid a $25 per hour wage rate, while Civilla is paid $29 per hour because of her additional experience level. Direct materials requisitioned for Job 405 totalled $1,200. The following additional information was collected on Job 405 : the job required 2 machine set-ups, 6 machine hours, and 2 quality control tests. 1. Compute the activity cost allocation rates for the year. 2. Complete the job cost record for Job 405 . Estimated Total Estimated Total Manufacturing Usage of Activity Overhead Costs Cost Driver Machine set-up ......... $162,0003,900 set-ups Machining ............ $1,020,0005,200 machine hours Quality control.......... \$ 341,0005,400 tests run Requirement 1. Compute the activity cost allocation rates for the year. First, determine the formula to compute the allocation rate for the activity-based cost rate, and then calculate the rate for each activity. (Round your answers to the nearest whole dollar.) = Activity cost allocation rate
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