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Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Materials handling Machine setup Machine
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Materials handling Machine setup Machine repair Inspections Budgeted Overhead Cost $160,000 13,260 1,380 10,560 Direct labor Direct materials Machine setup Machine hours Inspections Requirements for Job #971 which manufactured 4 units of product: Budgeted Level for Cost Driver 3,200 pounds 390 setups 30,000 machine hours 160 inspections 20 hours 130 pounds 30 setups 15,000 machine hours 15 inspections Using ABC, overhead cost assigned to Job # 971 for machine repair is: Overhead Cost Driver Weight of materials Number of setups Machine hours Number of inspections
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