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SHOW ALL WORK. The Thompson Company uses activity-based costing to determine product cost. Three activities and their rates have been calculated as shown below. Setting
SHOW ALL WORK. The Thompson Company uses activity-based costing to determine product cost. Three activities and their rates have been calculated as shown below.
Setting up equipment | = $500 per setup |
Moving goods | = $20 per move |
Machining | = $4 per machine hour |
Thompson provided the following data from the job order cost sheet for Job #345
Direct materials | $2,000 |
Direct labor | 1,800 |
Setups | 1 |
Moves | 30 |
Machine hours | 900 |
A. | Calculate the overhead applied to Job #345. |
B. | Calculate the total cost of Job #345. |
C. | If price is calculated by applying a 30% markup on cost, what is the price for Job #345? |
D. | Assume Job #345 required 2 setups, 15 moves, and 700 machine hours. Calculate the overhead applied to Job #345. |
E. | Assuming a 50% markup on cost, what is the price of Job #345 using the overhead rate calculated in part D. |
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