A local pictable manufacturer has budgeted these overhead costs $80,000 34,540 61,000 25,000 28,500 Handling Material They are considering adapting ABC coating and have estimated the cost drivers for each pool as shown Cost Driver Activity Orders 14,000 1,000 190,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Number of Inspections Order, Unite Direct Material Machine Hours Direct Laber Hours Number of Purchase Orders Number of Material ove 800 1,340 Direct Materials Direct Laber Number of Material Move Number of ch Number of Inspections Number of Square Feat Occupied Total Order Cast 900 113,700 1,300 Number of Machine Setup Number of Inspectio 400 Number of Square Feet Oud 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 750
A local pictable manufacturer has budgeted these overhead costs $80,000 34,540 61,000 25,000 28,500 Handling Material They are considering adapting ABC coating and have estimated the cost drivers for each pool as shown Cost Driver Activity Orders 14,000 1,000 190,000 Recent success has yielded an order for 900 tables. Assume direct labor costs per hour of $25. Activity Number of Inspections Order, Unite Direct Material Machine Hours Direct Laber Hours Number of Purchase Orders Number of Material ove 800 1,340 Direct Materials Direct Laber Number of Material Move Number of ch Number of Inspections Number of Square Feat Occupied Total Order Cast 900 113,700 1,300 Number of Machine Setup Number of Inspectio 400 Number of Square Feet Oud 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 750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:A local picnic table manufacturer has budgeted these overhead costs:
Purchasing
$80,000
Handling Materials
34,540
Machine Setups
63,000
Inspections
25,000
Utilities
25,500
They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown:
Cost Driver
Activity
Orders
Material Moves
B00
1,340
Machine Setups
14,000
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 $25.
Activity
Order, Units
Direct Materials
Machine Hours
Direct Labor Hours
Number of Purchase Orders
Number of Material Moves
Number of Machine Setups
Number of Inspections
Direct Materials
Direct Labor
Number of Material Moves
900
Number of Machine Setups
Number of Inspections
Number of Square Feet Occupied
Total Order Cast
112,700
15,300
5,300
Number of Square Feet Occupied
Determine how much the job would cast given the following activities: Do not round Intermediate computations and round final answers to nearest whole number.
Cost Assigned
70
750
100
400
9,000
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