Managerial Project (Job Costing) 2) Sandy Scamp Manufacturing Company (Part The Sandy Scamp Manufacturing Company in part 1 used a overhead pool applied using direct labor hours. Management is questioning the results and has asked the Cost Accounting Department to provi out of overhead and make it a direct cost as shown in the tables below. This change was justified because new technology below. cost. The second change was to install an extensive Activity overhead with ten cost pool s as shown allow the tracking of this year. The The activity rates are (Normal Costing) at the beginning of the current following ufacturing data was used to determine the activity rates for the man Estimated Total Use of Driver Hierarchy Costs Driver 24,000 parts Design Product $370,000 Parts Hrs. hours 212 Engineering 1200 orders Purchasing Batch 4.000 Purchase orders 152 batches 12.000 Material Handling 76,000 Batches Moved set-ups 680 Activities Unit 980,000 Turns 1,960,000 tums Assembly Unit 125,000 Direct Labor Hrs. 125,000 hrs Inspection Batch 340,000 Tests 170.000 tests Power Usage Machines) Unit 300.000 Machine Hours 100,000 hours Facilities &Management Facility 1.500.000 Units Produced 50,000 units Total Est. Overhead $4,029,000 data is available for the third quarter of the current year: The fol 15 Job 16 Job 12 13 Job 14 Job 0 Beg. Work in Prog S169,000 0 0 0 S458,000 Direct Material Cost $312,000 $1,000,000 $890,000 $484,000 $165,000 Direct Labor Cost S165.000 S298,000 S190,000 SI44,000 S78000 Direct Robotics Cost S274.000 S261,000 S287,000 S100,000 1,000 Parts in Design 0 4.000 5,000 6,000 300 Engineering Hours 20 500 600 400 400 Purchase Orders 100 100 200 300 Batches Handled Machining Turns 000 100,000 120,000 110,000 80,000 90.0 5,000 11,000 10,000 2,000 Direct Labor Hours Inspection Tests 6.000 10,000 12,000 11,000 4,000 Machine Hours 9,000 14,000 18,000 15.000 1000 Units Produced 3,000 2.000 4.000 l,000 5,000