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Thurman Brothers Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $837,612 in overhead costs when a total
Thurman Brothers Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $837,612 in overhead costs when a total of 10 000 direct labour hours were incurred. After implementing activity based costing (ABC), the company's accountant identified the following related information: Proportion of Activity Allocation Base Overhead Cost Material delivery and handling Number of deliveries (100-20-25-B]% Inspections Number of inspections 25% Supervision Hours of supervisor time 20% Purchasing Number of purchase orders 23% The number of activities for standard and custom-made cabinets is as follows: Standard Custom-made Number of deliveries 500 700 Number of inspections 600 400 Hours of supervisor time 1000 2000 Number of purchase orders 800 450 During the past year, Thurman accepted a customer order for a set of custom-made cabinets that would require the foll Direct labour hours 45 Number of deliveries 4 Number of inspections 5 2 Hours of supervisor time 20 Number of purchase orders Required: Using activity based costing (ABC), what would be the total overhead costs applied in Purchasing Activity for this job? ***** IMPORTANT Keep your answer correct up to 2 decimal places after the point Do NOT type Comma(,) Eg You should put 12345.67 instead of 12,34567 Do NOT put $ sign Not following instructions will result in O for this
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