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Neal Company manufactures computer workstations. The company's three activities and their overhead cost drivers follow. Activity Fabrication $ 135,000 Machine hours Assembly Inspection Budgeted
Neal Company manufactures computer workstations. The company's three activities and their overhead cost drivers follow. Activity Fabrication $ 135,000 Machine hours Assembly Inspection Budgeted Cost Activity Cost Driver Budgeted Activity Usage 2,500 machine hours 150,800 Direct labor hours 110,400 Units inspected 2,900 direct labor hours 6,900 units Job 101's actual activity usage along with a partial customer profitability report follow. Job 101 Machine Hours 20 MH Direct Labor Hours 25 DLH Units 15 Profitability Report-Job 101 Sales Cost of goods sold Direct materials Direct labor Overhead Gross profit Customer service costs Customer income $ 9,400 $2,390 1,200 7 950 7 Required: 1. Compute activity rates using activity-based costing. 2. Use the results from part 1 to allocate overhead cost to Job 101. 3. Complete the profitability report for Job 101. Complete this question by entering your answers in the tabs below.
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