Hijinx Company projected the following overhead costs and cost drivers: Overhead Item Expected Costs Cost Driver Expected Quantity Setup costs $121,500 Number of setups 50 Ordering costs 40,500 Number of orders 30 Maintenance 174,000 Machine-hours 600 Power 27,000 Kilowatt-hours 600 Total overhead cost 363,000 Direct Labor Hours 500 Hijinx contracted for two jobs, both of which were completed during the year. Production managers reported the following data in relation to these jobs: Job 1 Job 2 Direct materials $170,000 $120,000 Direct labor $14,000 $11,000 Direct labor-hours 300 220 Number of setups 25 23 Number of orders 20 13 Machine-hours 410 200 Kilowatt-hours 380 240 If Hijinx uses a company-wide predetermined overhead rate and the allocation basis is machine hour. How much overhead costs should be assigned to Job 1. Show the calculation steps and clearly indicate the answers for each question. Round decimals to the nearest tenth.
Hijinx Company projected the following
|
Overhead Item |
Expected Costs |
Cost Driver |
Expected Quantity |
|
Setup costs |
$121,500 |
Number of setups |
50 |
|
Ordering costs |
40,500 |
Number of orders |
30 |
|
Maintenance |
174,000 |
Machine-hours |
600 |
|
Power |
27,000 |
Kilowatt-hours |
600 |
|
Total overhead cost |
363,000 |
Direct Labor Hours |
500 |
Hijinx contracted for two jobs, both of which were completed during the year. Production managers reported the following data in relation to these jobs:
|
|
Job 1 |
Job 2 |
|
Direct materials |
$170,000 |
$120,000 |
|
Direct labor |
$14,000 |
$11,000 |
|
Direct labor-hours |
300 |
220 |
|
Number of setups |
25 |
23 |
|
Number of orders |
20 |
13 |
|
Machine-hours |
410 |
200 |
|
Kilowatt-hours |
380 |
240 |
If Hijinx uses a company-wide predetermined overhead rate and the allocation basis is machine hour. How much overhead costs should be assigned to Job 1. Show the calculation steps and clearly indicate the answers for each question. Round decimals to the nearest tenth.
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