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The Green Company makes boats from wood. Job 459 is to build 40 rowboats. Job 459 requires 1,000 pounds of wood costing $8 per pound.
- The Green Company makes boats from wood. Job 459 is to build 40 rowboats.
Job 459 requires 1,000 pounds of wood costing $8 per pound. It requires 60 hours of direct labor costing $25 per hour.
Total cost for all jobs Total amount of activity for all jobs
Type of manufacturing overhead for the whole year for the whole year
Setup Cost $50,000 400 setups
Materials Handling 320,000 16,000 moves
Electricity 30,000 6,000 machine hours
_______
Total manufacturing overhead cost
for all jobs during the whole year $400,000
Please calculate the following if the Green Company uses activity based costing (the ABC method)::
- The allocation rate for setup cost
- The allocation rate for materials handling
- The allocation rate for electricity
- The direct materials cost of job 459
- The direct labor cost of job 459
- The manufacturing overhead cost applied to job 489 if job 489 requires 4 setups, 150 moves of materials, and 40 machine hours
- The total cost of job 459
- The cost per boat
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