Question
QUESTION 25 Peregrine Inc. uses activity based costing with two categories of overhead: maintenance and inspections. Overhead rates for the coming year are as follows:
QUESTION 25
Peregrine Inc. uses activity based costing with two categories of overhead: maintenance and inspections. Overhead rates for the coming year are as follows:
| Activity | Cost Driver | Activity Overhead Rate |
| Maintenance | Machine Hours | $28/MH |
| Inspection | Number of Inspections | $600/inspection |
Use the following data to estimate the total product cost of the potential job:
| Direct materials | $ 5,000 |
| Direct labor | $ 18,000 |
| Machine-hours | 200 |
| Number of inspections | 5 |
| Direct labor-hours | 600 |
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Fraud Examination
Authors: W. Steve Albrecht, Conan C. Albrecht, Chad O. Albrecht, Mark F. Zimbelman
3rd edition
324560842, 978-0324560848
