Walker Co. designs and builds computer servers for data centers. They use job costing to determine the cost of the systems that they install which consist of server racks. Each system requires a different number of server racks to be installed.

Use the forecasts below to determine the total cost of each customer's system:

One manager must be hired for every twenty direct labor hours that will be spent on installations in total (round up for fractions), and the advertising expenses are used to run local television advertisements in the hopes of enticing new business.

The cost of a typical project is shown below, along with details about several customer orders.

Direct Materials	$5,000	per server rack
Direct Labor	$60	per hour
Manager Salary	$3,000	per person
Advertising Expenses	$10,000	per month
Direct Labor Time	2	hours per server rack

Customers	Alice	Ben	Chris	Doris
Size of System in Racks	10	4	7	15

Hours	Alice	Ben	Chris	Doris
	20	8	14	30

A: What driver should Walker Co. use for each of the overhead above? Why? The correct choice will be something that you have data for in every case.

B: Using the drivers you chose in part A calculate the per unit cost to be allocated.

Category	Per Unit Cost		Category	Per Unit Cost
Manager Salaries			Advertising
Driver Chosen			Driver Chosen
Total Forecast Cost Driver			Total Cost Driver
Total Forecast Overhead			Total Overhead
Allocated Cost per Unit of the Driver			Allocated Cost per Unit of the Driver

C. Calculate the total cost for each customer using the template provided below.

Customer	Alice	Ben	Chris	Doris
Direct Costs:
Direct Materials ($)
Direct Labor ($)
Overhead Costs:
Allocated Overhead ($)
Total Costs ($):