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QUESTION 28 Gem Systems Gem Systems uses an activity-based costing system. The company has gathered the following information concerning various cost pools and activity drivers,
QUESTION 28 Gem Systems Gem Systems uses an activity-based costing system. The company has gathered the following information concerning various cost pools and activity drivers, Normal Cost Activity cost pool Material Handing Machine setups Inspections Electricity Costs $25,000 35,000 $ 5,000 $15,000 Number of moves Number of setups Number of Inspection:s Kilowatt Hours 5,000 10,000 2,500 5,000 The following data was collected and is specific to Job 150 Direct Material Cost Direct Labor Cost Number of machine setups Number of material moves Number of inspections Kilowatt hours of electricity used Units produced $40,000 25,000 3.000 1,000 100 1.000 5.000 $10 per hour) Refer to Gem Systems. What is the amount of electricity cost allocated to Job 150? 1,000 O $15,000 3,000 5,000
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