Question
Leo Company has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $1,152,000
Leo Company has identified the following overhead costs and cost drivers for next year:
Overhead Item | Expected Costs | Cost Driver | Maximum Quantity |
Setup costs | $1,152,000 | Number of setups | 4,800 |
Ordering costs | 320,000 | Number of orders | 40,000 |
Maintenance | 1,600,000 | Machine-hours | 64,000 |
Power | 160,000 | Kilowatt-hours | 400,000 |
The following are two of the jobs completed during the year:
| Job 201 | Job 202 |
Direct materials | $18,000 | $20,000 |
Direct labor | $24,000 | 15,000 |
Units completed | 750 | 600 |
Direct labor-hours | 180 | 220 |
Number of setups | 12 | 15 |
Number of orders | 16 | 30 |
Machine-hours | 360 | 300 |
Kilowatt-hours | 180 | 240 |
Determine the unit cost for each job using the four cost drivers. (Round amounts to 2 decimal places.)
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