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
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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 $30/MH Inspection Number of Inspections $750/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
| $32,750 | ||
| $33,600 | ||
| $31,600 | ||
| $34,450 |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
