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See problem below 4. Everett Company has identified the following overhead costs and activity drivers for next year: Overhead Item Expected Cost Activity Driver Expected
See problem below
4. Everett Company has identified the following overhead costs and activity drivers for next year: Overhead Item Expected Cost Activity Driver Expected Quantity Setup costs Ordering costs Maintenance Power $300,000 80,000 400,000 40,000 Number of setups Number of orders Machine hours Kilowatt hours 1,200 10,000 16,000 100,000 The following are two of the jobs completed during the year: Job A101 Job B102 Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Kilowatt hours $5,000 6,000 500 60 6 8 90 900 $6,000 3,500 400 35 8 15 75 1,200 The company's normal activity is 20,000 direct labor hours. Required: a. Determine the unit cost for each job using direct labor hours to apply overhead. (Round amounts to 2 decimal places.) b. Determine the unit cost for each job using the four activity drivers. (Round amounts to 2 decimal places.)Step by Step Solution
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