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A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 31,920 Machine Setups 64,400 Inspections 30,600 Utilities 25,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,330 Machine Setups 14,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $25. Activity Order, Units 1,000 Direct Materials 112,800 Machine Hours 15,200 Direct Labor Hours 5,300 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 90 Number of Inspections 500 Number of Square Feet Occupied 9,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials Direct Labor E

A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 31,920 Machine Setups 64,400 Inspections 30,600 Utilities 25,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,330 Machine Setups 14,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $25. Activity Order, Units 1,000 Direct Materials 112,800 Machine Hours 15,200 Direct Labor Hours 5,300 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 90 Number of Inspections 500 Number of Square Feet Occupied 9,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials Direct Labor E

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 31,920 Machine Setups 64,400 Inspections 30,600 Utilities 25,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,330 Machine Setups 14,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $25. Activity Order, Units 1,000 Direct Materials 112,800 Machine Hours 15,200 Direct Labor Hours 5,300 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 90 Number of Inspections 500 Number of Square Feet Occupied 9,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number Cost Assigned Direct Materials Direct Labor pic S DT22 D AVE ID
Transcribed Image Text:A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 31,920 Machine Setups 64,400 Inspections 30,600 Utilities 25,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,330 Machine Setups 14,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $25. Activity Order, Units 1,000 Direct Materials 112,800 Machine Hours 15,200 Direct Labor Hours 5,300 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 90 Number of Inspections 500 Number of Square Feet Occupied 9,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number Cost Assigned Direct Materials Direct Labor pic S DT22 D AVE ID
They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,330 Machine Setups 14,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has vielded an order for 1.000 tables, Assume direct labor costs per hour of $25. Activity Order, Units 1,000 Direct Materials 112,800 Machine Hours 15,200 Direct Labor Hours 5,300 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 90 Number of Inspections 500 Number of Square Feet Occupied 9,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials Direct Labor Number of Material Moves Number of Machine Setups Number of Inspections Number of Square Feet Occupied Total Order Cost Epic MS DT22 Purell Print 11 F12 Lock Lenov Backapace Vert Hime Page Lock ER T Y O P Page Dewn Dyinte End DF G H J KL Enter AVE ID
Transcribed Image Text:They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,330 Machine Setups 14,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has vielded an order for 1.000 tables, Assume direct labor costs per hour of $25. Activity Order, Units 1,000 Direct Materials 112,800 Machine Hours 15,200 Direct Labor Hours 5,300 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 90 Number of Inspections 500 Number of Square Feet Occupied 9,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number. Cost Assigned Direct Materials Direct Labor Number of Material Moves Number of Machine Setups Number of Inspections Number of Square Feet Occupied Total Order Cost Epic MS DT22 Purell Print 11 F12 Lock Lenov Backapace Vert Hime Page Lock ER T Y O P Page Dewn Dyinte End DF G H J KL Enter AVE ID
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