Question 2: 7 Marks

Gilmore Group has four overhead cost pools. Next year the expected overhead costs and the expected activity for the four activity-based cost drivers that would be used for each cost pool are as follows:

Overhead cost pools: Activity-based cost drivers: Maintenance $315,000 Machinehours 45,000 hours Materials handling $135 ,000 Material moves 9,000 moves Setups $112,500 Setups 450 setups Inspection $225 ,000 Quality inspections 18,000 inspections The production manager is submitting a bid for a new job that she believes will result in future growth for the organisation. The'llowing estimates are for the new job: Direct material $1 1,250 Direct labour (1,700 hours) $17,000 Number of matcal moves 18 Number of inspections 12 Number of setups 7 Number of machinehours 675 0 Required: Show all workings for the below calculations