Question
Wings Co. budgeted $556,000 manufacturing direct wages, 2,500 direct labor hours, and had the following manufacturing overhead: Overhead Cost PoolBudgeted Overhead CostBudgeted Level for Cost
Wings Co. budgeted $556,000 manufacturing direct wages, 2,500 direct labor hours, and had the following manufacturing overhead:
Overhead Cost PoolBudgeted
Overhead CostBudgeted Level
for Cost DriverOverhead Cost DriverMaterials handling$198,0003,300poundsWeight of materialsMachine setup14,000400setupsNumber of setupsMachine repair1,80030,000machine hoursMachine hoursInspections10,200170inspectionsNumber of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor25hoursDirect materials140poundsMachine setup40setupsMachine hours15,100machine hoursInspections20inspections
Using ABC, the materials handling overhead cost assigned to Job #971 is:
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