Mila Kunis Manufacturing Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year. Cost Pool Overhead Costs Cost Driver Supervision of direct labor $375,000 Activity Level Direct labor-hours 950,000 Machine maintenance $130,000 Machine-hours 1,100,000 Facility rent $220,000 Total overhead costs $725,000 Square feet of area 170,000 The accounting records show that the Orion Job consumed the following resources: Actual Level Cost Driver Direct labor-hours 225 Machine-hours 1,750 Square feet of area 55 Question: If direct labor hours are considered the only overhead cost driver, what is the single cost driver rate for Mila Kunis?

Mila Kunis Manufacturing Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year. Cost Pool Overhead Costs Cost Driver Supervision of direct labor $375,000 Activity Level Direct labor-hours 950,000 Machine maintenance $130,000 Machine-hours 1,100,000 Facility rent $220,000 Total overhead costs $725,000 Square feet of area 170,000 The accounting records show that the Orion Job consumed the following resources: Actual Level Cost Driver Direct labor-hours 225 Machine-hours 1,750 Square feet of area 55 Question: If direct labor hours are considered the only overhead cost driver, what is the single cost driver rate for Mila Kunis?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...

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