Managerial Project (Job Costing) Sandy Scamp Manufacturing Company (Part 1) Sandy Scamp Manufacturing Company produces a product that is modified to the have big cost differences. Each order is needs each customer. modified product The Company uses a considered a job that could include several thousand units of the product. which is allocated Job Costing System with only one cost pool for Manufacturing Overhead Costing) at the sed on direct labor hours. The overhead rate is predetermined CNormal beginning of the to speed up Sandy Scamp part 2, the overhead items were The classified in year. In order of utilities, depreciation. rent, etc. activities rather than the traditional a h following manufacturing data was used to determine the overhead rate for the current year: Total Estimated Activity Costs $370,000 212,000 24,000 Purchasin 76,000 Material Handling Machine Sel 980,000 Machining Activities 125,000 Assembl 340.000 Ins 300,000 Power Usa Machines 1,500,000 Facilities & Mana Robotics S7,000,000 Total Est. Overhead Estimated Cost Driver Use of Driver 125,000 hrs Direct Labor hours The following data is available for the third quarter of the current year Job 12 Job 13 Job 14 Job 15 Job 16 Work in Prog. S169,000 Direct Material Cost $312.000 S,000,000 S890,000 S484,000 $458.000 Direct Labor Cost S165.000 $298,000 $190,000 SI44.000 S165,000 2,000 11,000 10,000 6000 Direct Labor Hours 3.000 2.000 4.000 .000 5.000 Units Produced Additional Information: Jobs 12-15 were completed this quarter. Job 16 was started but not completed this quarter. Jobs 12 14 have been delivered to the customers. Job 12 was in process at the beginning of the quarter and was included in last year's inventory at a cost of $169,000 as shown above