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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

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