Question
Wings Co. budgeted $567,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead Cost Budgeted Level
Wings Co. budgeted $567,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead:
| Overhead Cost Pool | Budgeted Overhead Cost | Budgeted Level for Cost Driver | Overhead Cost Driver | |||
| Materials handling | $ | 132,000 | 4,400 | pounds | Weight of materials | |
| Machine setup | 15,300 | 510 | setups | Number of setups | ||
| Machine repair | 1,920 | 32,000 | machine hours | Machine hours | ||
| Inspections | 11,200 | 280 | inspections | Number of inspections | ||
Requirements for Job #971 which manufactured 4 units of product:
| Direct labor | 20 | hours |
| Direct materials | 250 | pounds |
| Machine setup | 50 | setups |
| Machine hours | 16,200 | machine hours |
| Inspections | 15 | inspections |
The total overhead of Job #971 under the ABC costing is:
Multiple Choice
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$215.
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$480.
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$2,220.
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$2,630.
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$10,572.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
