A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling Materials 33,250 Machine Setups 72,000 Inspections 20,800 Utilities 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 800 Material Moves 1,330 Machine Setups 16,000 Number of Inspections 4,000 Square Feet 180,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Order, Units 900 Direct Materials 112,600 Machine Hours 15,200 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 100 Number of Inspections 500 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. Cost Assigned Direct Materials $fill in the blank 1 Direct Labor fill in the blank 2 Number of Material Moves fill in the blank 3 Number of Machine Setups fill in the blank 4 Number of Inspections fill in the blank 5 Number of Square Feet Occupied fill in the blank 6
A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling Materials 33,250 Machine Setups 72,000 Inspections 20,800 Utilities 45,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 800 Material Moves 1,330 Machine Setups 16,000 Number of Inspections 4,000 Square Feet 180,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Order, Units 900 Direct Materials 112,600 Machine Hours 15,200 Direct Labor Hours 5,400 Number of Purchase Orders 50 Number of Material Moves 750 Number of Machine Setups 100 Number of Inspections 500 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. Cost Assigned Direct Materials $fill in the blank 1 Direct Labor fill in the blank 2 Number of Material Moves fill in the blank 3 Number of Machine Setups fill in the blank 4 Number of Inspections fill in the blank 5 Number of Square Feet Occupied fill in the blank 6
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A local picnic table manufacturer has budgeted these
| Purchasing | $80,000 |
| Handling Materials | 33,250 |
| Machine Setups | 72,000 |
| Inspections | 20,800 |
| Utilities | 45,000 |
They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown:
| Cost Driver | Activity |
| Orders | 800 |
| Material Moves | 1,330 |
| Machine Setups | 16,000 |
| Number of Inspections | 4,000 |
| Square Feet | 180,000 |
Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25.
| Activity | |
| Order, Units | 900 |
| Direct Materials | 112,600 |
| Machine Hours | 15,200 |
| Direct Labor Hours | 5,400 |
| Number of Purchase Orders | 50 |
| Number of Material Moves | 750 |
| Number of Machine Setups | 100 |
| Number of Inspections | 500 |
| Number of Square Feet Occupied | 7,000 |
Determine how much the
| Cost Assigned | |||
| Direct Materials | $fill in the blank 1 | ||
| Direct Labor | fill in the blank 2 | ||
| Number of Material Moves | fill in the blank 3 | ||
| Number of Machine Setups | fill in the blank 4 | ||
| Number of Inspections | fill in the blank 5 | ||
| Number of Square Feet Occupied | fill in the blank 6 | ||
|
Total Order Cost
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education