A company has identified the following overhead costs and cost drivers for the coming year: ...

Question

Question

A company has identified the following overhead costs and cost drivers for the coming year: ...

A company has identified the following overhead costs and cost drivers for the coming year:

			Budgeted
Overhead Item	Cost Driver	Budgeted Cost	Activity Level
Machine setup	Number of setups	$ 12,000	150
Inspection	Number of inspections	85,000	4,250
Material handling	Number of material moves	66,000	5,500
Engineering	Engineering hours	11,000	550

Budgeted direct labor cost was $87,000 and budgeted direct material cost was $241,600. The following information was collected on three jobs that were completed during the year:

	Job 101	Job 102	Job 103
Direct materials	$ 3,250	$ 8,250	$ 4,250
Direct labor	$ 1,500	$ 1,500	$ 3,000
Units completed	100	50	200
Number of setups	1	2	4
Number of inspections	20	10	30
Number of material moves	30	10	50
Engineering hours	10	50	10

The company prices its products at 140% of cost. If the company uses activity-based costing (ABC), the price of each unit of Job 103 would be (Round your final answer to 2 decimal places.)

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Direct Materials		$4250
Direct Labor		$3000
Overhead:-
Machine setup (4 * $80)	$320
Inspection (30 * $20)	$600
Material handling (50 * $12)	$600
Engineering (10 * $20)	$200	$1720
Total Cost (A)		$8970
Total Units (B)		200
Unit cost (A/B)		$44.85
Price of each Unit ($44.85 * 140%)		$62.79

Working Note :-

Overhead Item	Budgeted Cost (A)	Activity Level (B)	Cost per Activity (A/B)
Machine setup	$12000	150	$80
Inspection	$85000	4250	$20
Material handling	$66000	5500	$12
Engineering	$11000	550	$20

Add a comment

Answer 2

Similar Homework Help Questions

A company has identified the following overhead costs and cost drivers for the coming year: (CIA...

A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted) Overhead Item Machine setup Inspection Material handling Engineering Cost Driver Budgeted Cost Number of setups $ 20,000 Number of inspections 130,000 Number of material moves 80,000 Engineering hours 50,000 Budgeted Activity Level 200 6,500 8,000 1,000 Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000. The following Information was collected on three jobs that were completed during the year:...
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:...

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Expected Quantity 250 1,500 2,000 4,000 Expected Cost Overhead Item Cost Driver $ 59,500 Number of setups Setup costs Ordering costs Maintenance Power Total Overhead 49,000 Number of orders 138,000 Machine hours 29,500 Kilowatt hours $ 276,000 Total direct labor hours budgeted - 2,000 hours The following actual data applies to one of the products completed during the year: Product X Direct materials Direct...
Calculator Summer Marvufacturing has four categories of overhead. The four categories and expected overhead costs for...

Calculator Summer Marvufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are listed as follows: Maintenance Materials handling Setups Inspection $255.000 125.000 30,000 105,000 Currently, overhead is applied using a predetermined overhead tate based upon budgeted direct later hours. 100.000 direct labor hours we budgeted for next year The company has been asked to submit a bid for a proposed job. The plant manager feels that in this job would...

Summer Manufacturing has four categories of overhead. The four categories and expected overhead costs for each...

Summer Manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are listed as follows: Maintenance $255,000 Materials handling 125,000 Setups 30,000 Inspection 105,000 Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours. 100,000 direct labor hours are budgeted for next year. The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result...
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:...

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Budgeted Cost Cost Driver Cost Driver Level Setup $ 220,000 Number of setups 1,100 Ordering 110,000 Number of orders 5,500 Maintenance 275,000 Machine hours 27,500 Power 55,000 Kilowatt hours 55,000 Total direct labor hours budgeted = 11,000 hours. The following data applies to Product X, one of the products completed during the year. Direct materials $ 5,500 Direct labor $ 6,600 Units...
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:...

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $469,800 Number of setups 580 Ordering costs 348,000 Number of orders 17,400 Machine costs 747,000 Machine hours 41,500 Receiving 462,000 Receiving hours 10,500 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $647,000 $779,000 Direct labor $471,000 $484,000 Units completed 15,600 7,200...

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:...

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $480,850 Number of setups 590 Ordering costs 425,500 Number of orders 18,500 Machine costs 700,400 Machine hours 41,200 Receiving 298,800 Receiving hours 8,300 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $570,000 $821,000 Direct labor $462,000 $472,000 Units completed 16,500 8,800...
Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:...

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $501,760 Number of setups 640 Ordering costs 384,000 Number of orders 19,200 Machine costs 913,000 Machine hours 41,500 Receiving 323,700 Receiving hours 8,300 Deoro produces two models of dishwashers with the following expected prime costs and activity demands: Model A Model B Direct materials $647,000 $773,000 Direct labor $486,000 $451,000 Units completed 16,200 7,500...
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the Cost...

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the Cost Pools Setup Ordering Maintenance Power Budgeted Cost $70,000 35,000 87,500 17,500 Cost Driver Number of setups Number of orders Machine hours Kilowatt hours Cost Driver Level 350 1,750 8,750 17,500 Total direct labor hours budgeted = 3,500 hours. The following data applies to Product X, one of the products completed during the year. Direct materials Direct labor Units completed Direct labor hours Number of...

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:...

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Budgeted Cost Cost Driver Cost Driver Level Setup $ 61,000 Number of setups 305 Ordering 30,500 Number of orders 1,525 Maintenance 76,250 Machine hours 7,625 Power 15,250 Kilowatt hours 15,250 Total direct labor hours budgeted = 3,050 hours. The following data applies to Product X, one of the products completed during the year. Direct materials $ 1,525 Direct labor $ 1,830 Units...

A company has identified the following overhead costs and cost drivers for the coming year: ...

Homework Answers

Add Answer to:
A company has identified the following overhead costs and cost drivers for the coming year: ...

Post as a guest

Earn Coins