9. Jackal Security Inc. provides security guards to shopping malls. Data related to Jackal’s overhead costs...
9. Jackal Security Inc. provides security guards to shopping malls. Data related to Jackal’s overhead costs for the current year are as follows: Head Office Activity Total Overhead Cost Cost Driver Estimated activity Supervision $128,000 # of employees 80 Technology fees 58,000 computer hours 2,000 Rent/Utility/Taxes 42,000 direct labour hours 160,000 Total $228,000 During the year, Jackal provided security to the Apple Creek Mall including five employees, 150 computer hours and 10,800 labour hours. Overhead applied to the Apple Creek Mall job for the year using ABC is a. $1,629.26 b. $15,185.00 c. $15,390.00 d. $17,100.00.
Homework Answers
OPTION: b. $15,185.00
WORKING:
SUPERVISION CHARGES PER EMPLOYEE=$128000/80 EMPLOYEES
=$1600/EMPLOYEE
TECHNOLOGY FEES PER COMPUTER HOUR=$58000/2000 COMPUTER HOUR
=$29/COMPUTER HOUR
RENT/UTILITY/TAXES PER DIRECT LABOUR HOUR=$42000/160000 DIRECT LABOUR HOURS
=$0.2625/DIRECT LABOUR HOUR
CALCULATION OF TOTAL AMOUNT OF OVERHEAD APPLIED TO APPLE GREEK MALL JOB :
| OVERHEAD | ACTIVITY(COST DRIVER) | AMOUNT |
| SUPERVISION CHARGES | EMPLOYEE |
$8000 ($1600X5) |
| TECHNOLOGY FEES | COMPUTER HOUR |
$4350 ($29X150) |
| RENT/UTILITY/TAXES | DIRECT LABOUR HOUR |
$2835 ($0.2625X10800) |
| TOTAL | $15185 |
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9. Jackal Security Inc. provides security guards to shopping
malls. Data related to Jackal’s overhead costs...
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