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The company uses ABC and has determined the following activities, cost drivers and activity rates Activity Center Activity Driver Activity rate Direct labor usage Direct
The company uses ABC and has determined the following activities, cost drivers and activity rates
Activity Center | Activity Driver | Activity rate |
Direct labor usage | Direct labor hours | $3 per DL hr |
Machine usage | Machine hours | $8 per machine hr |
Machine setups | Setups | $200 per set up |
Design changes | Design changes | $400 per design change |
You have completed Job 101. Determine the cost of Job 101, if the job required $1,000 in Direct Material, $3,000 in Direct Labor, 500 direct labor hours, 75 machine hours, 2 setups and 1 design change.
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