A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 32,160 Machine Setups 70,500 Inspections 24,500 Utilities 28,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,340 Machine Setups 15,000 Number of Inspections 5,000 Square Feet 190,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $15. Activity Order, Units 900 Direct Materials 112,700 Machine Hours 15,300 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 90 Number of Inspections 400 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number.
A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling Materials 32,160 Machine Setups 70,500 Inspections 24,500 Utilities 28,500 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,340 Machine Setups 15,000 Number of Inspections 5,000 Square Feet 190,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $15. Activity Order, Units 900 Direct Materials 112,700 Machine Hours 15,300 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 90 Number of Inspections 400 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A local picnic table manufacturer has budgeted these
| Purchasing | $63,000 |
| Handling Materials | 32,160 |
| Machine Setups | 70,500 |
| Inspections | 24,500 |
| Utilities | 28,500 |
They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown:
| Cost Driver | Activity |
| Orders | 700 |
| Material Moves | 1,340 |
| Machine Setups | 15,000 |
| Number of Inspections | 5,000 |
| Square Feet | 190,000 |
Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $15.
| Activity | |
| Order, Units | 900 |
| Direct Materials | 112,700 |
| Machine Hours | 15,300 |
| Direct Labor Hours | 5,400 |
| Number of Purchase Orders | 50 |
| Number of Material Moves | 750 |
| Number of Machine Setups | 90 |
| Number of Inspections | 400 |
| Number of Square Feet Occupied | 7,000 |
Determine how much the
Transcribed Image Text: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
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