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Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost

Plaid Manufacturing Co. produces two products: G1 and M1. The company uses an activity based costing system. The following are the activities, budgeted total cost and cost drivers per activity for the year 20x9:

Activity

Budgeted Cost

Cost Base

Cost Base Volume

Assembly

$864585

# of DL hours

36772

Inspection

$664181

# of units

20927

Shipping

$349574

# of batches

189

Plaid Manufacturing has budgeted to produce 3,000 units of G1. G1 is manufactured in batches of 73 units and requires 16196 hours of direct labour.

What is the overhead cost per unit for product G1?

Select one:

a. $203.68

b. $626.11

c. $153.04

d. $184.01

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Question text

Barker Inc. has identified the following overhead costs and cost drivers fore the upcoming year:

Overhead Item

Expected Cost

Cost Driver

Expected Quantity

Setup costs

$191997

Number of setups

451

Ordering costs

117974

Number of orders

3162

Maintenance

354369

Machine hours

3677

Power

49146

Kilowatt hours

91356

The following are two of the jobs completed during the year:

Job 400

Job 401

Direct materials

$854

$1535

Direct labour

$689

$2850

Direct labour hours

48

66

Number of setups

2

5

Number of orders

5

4

Machine hours

19

26

Kilowatt hours

28

52

The companys normal activity is 4003 direct labour hours.

If Barker used activity based costing, the total cost of Job 401 would be:

Select one:

a. $ 9197

b. $ 6663

c. $ 9019

d. $ 9169

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