Question
Zippy Company uses ABC to accounting for costs in it's manufacturing process. They have identified three manufacturing activities that incur manufacturing overhead costs: Materials handling,
Zippy Company uses ABC to accounting for costs in it's manufacturing process. They have identified three manufacturing activities that incur manufacturing overhead costs: Materials handling, machine setups and general factory facility support. They have determined the costs of these activities and the allocation bases to be as shown below. Calculate the total overhead allocated to JOB 510, which has 411 parts, 12 setups, and 48 direct labor hours. (note: when calculating your overhead rates, round them to four decimal places before calculating the cost of the job, for example, 23.3125). Round all calculations including your final answer to four decimal places.
Activity: Materials Handling, Overhead Cost: $6629, Allocation Base: Number of parts, 3200 total parts anticipated.
Activity: Machine Setup, Overhead Cost: $10249, Allocation Base: Number of setups, 25 total setups anticipated.
Activity: General Facilities, Overhead Cost: $91756, Allocation Base: Direct Labor Hours, 1000 total hours anticipated
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