Question
Lion Company has identified the following overhead costs and cost drivers for next year: Overhead Item Expected Costs Cost Driver Maximum Quantity Setup costs $1,166,400
Lion Company has identified the following overhead costs and cost drivers for next year:
| Overhead Item | Expected Costs | Cost Driver | Maximum Quantity |
| Setup costs | $1,166,400 | Number of setups | 4,800 |
| Ordering costs | 540,000 | Number of orders | 40,000 |
| Maintenance | 1,856,000 | Machine-hours | 64,000 |
| Power | 180,000 | 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
| $74.20 | ||
| $79.76 | ||
| $85.12 | ||
| $75.00 |
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The Essential Handbook Of Internal Auditing
Authors: K. H. Spencer Pickett
1st Edition
0470013168, 978-0470013168
