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red tree manufacturing Red Tree Manufacturing Inc., (the company) a children's play house manufacturer, is considering bidding on a job. In order to submit this

red tree manufacturing
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Red Tree Manufacturing Inc., ("the company") a children's play house manufacturer, is considering bidding on a job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows: Number of inspections 3200 Number of machine hours 1,800 Number of direct labour hours 4,000 Direct materials $63,000 Direct labour $54,000 Number of material moves 75000 The company has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows: Costs Cost Driver Expected Activity Materials handling $100,000 Material moves 12,500 Maintenance $180,000 Machine hours 24,000 Inspection $28,000 Inspections 4,000 The company applies overhead using a predetermined overhead rate based upon a budgeted direct labour hours of 20,000. Using the above information answer the following questions. If the company used activity-based costing, calculate the total overhead cost that would be assigned for material handling to the job A If the company used activity-based costing, calculate the total overhead cost that would be assigned for maintenance to the job If the company used activity-based costing, calculate the total overhead cost that would be assigned for inspections to the job If the company used activity-based costing, calculate the total of material cost + direct labour cost that would be assigned to the job If the company used activity-based costing, calculate the total cost that would be assigned to the job If the company allocated overhead to the job using a plantwide overhead rate, calculate the total cost assigned to the job A/ It would not be appropriate to adopt an ABC policy if which of the following were true: a) All of the other answers are correct. b) The products being produced were quite similar. Oc) All products consumed resources in a similar manner. d) The cost of developing individual cost pools was too great

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