Custom Furniture Inc. uses an activity-based costing system. The company has provided the following estimates for overhead activities and related cost drivers identified for its production process below. Estimates for Overhead Activities and Related Cost Drivers Activities Cost driver Activity costs Amount of cost drivers Purchase orders # of purchase orders $336,000 28,000 orders Machine set up # of setups $625,000 2,500 setups Finishing activities # of finishing hours $450,000 25,000 finishing hours During the current month, the company has completed job #450 which involved producing 150 custom shelves. The job required 120 purchase orders, 3 machine setups, and 250 hours for finishing activity. Use the information above to answer the following questions. (Round any intermediate calculations and the final answer to two decimal points. Do not use $ sign in your in your answer as it is already given.) The allocated overhead costs to job #450 for Purchase order would be: $ . The allocated overhead costs to job #450 for Machine setup would be: $ . The allocated overhead costs to job #450 for Finishing activity would be: $ . The total overhead costs allocated to job #450 would be: $ . The total overhead costs allocated to each unit of shelf produced in job #450 would be: $ per shelf.

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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Custom Furniture Inc. uses an activity-based costing system. The company has provided the following estimates for overhead activities and related cost drivers identified for its production process below.

Estimates for Overhead Activities and Related Cost Drivers

Activities	Cost driver	Activity costs	Amount of cost drivers
Purchase orders	# of purchase orders	$336,000	28,000 orders
Machine set up	# of setups	$625,000	2,500 setups
Finishing activities	# of finishing hours	$450,000	25,000 finishing hours

During the current month, the company has completed job #450 which involved producing 150 custom shelves. The job required 120 purchase orders, 3 machine setups, and 250 hours for finishing activity.

Use the information above to answer the following questions. (Round any intermediate calculations and the final answer to two decimal points. Do not use $ sign in your in your answer as it is already given.)

The allocated overhead costs to job #450 for Purchase order would be: $ .
The allocated overhead costs to job #450 for Machine setup would be: $ .
The allocated overhead costs to job #450 for Finishing activity would be: $ .
The total overhead costs allocated to job #450 would be: $ .
The total overhead costs allocated to each unit of shelf produced in job #450 would be: $ per shelf.

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