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Thurman Brothers Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $600,000 in overhead costs Allocation Base Number

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Thurman Brothers Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $600,000 in overhead costs Allocation Base Number of deliveries Number of inspections Hours of supervisor time Number of purchase orders Proportion of Overhead Cost 30% 25% 2056 25% Material delivery and handling The number of activities for standard and custom-made cabinets is as follows Number of deliveries Number of inspections Hours of supervisor time Number of purchase orders Standard 500 600 1,000 800 Custom-made 700 400 2,000 400 During the past year, Thurman accepted a customer order for a set of cust Direct labor hours Number of deliveries Number of inspections Hours of supervisor time Number of purchase orders 45 Required 5 6 A. How much overhead would be applied to the job if traditional costing using direct labor hours as the cost driver were used? B. Using activity-based costing (ABC), what would be the overhead rate for each of the four activities? Material delivery and handling: Inspections Supervision: Purchasing: per delivery per inspection per supervisor hour per purchase order CUsing activity-based costing (ABC), what would be the total overhead applied to the above job? D. Compare the overhead applied using traditional costing to ABC costing and remark on the difference. Which one do you think is more accurate? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank

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