Cengage_Now_Assignment_8_Solutions

Cengage_Now_Assignment_8_Solutions - Cengage Now Assignment...

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Cengage Now Assignment 8 Solutions 1. (MC 5-3) Answer: C 2. (MC 5-4) Answer: C The total overhead cost assigned to the job would be: Purchasing Overhead $ 600.00 Material Handling Overhead 1,800.00 Quality Inspection Overhead 444.44 Total Overhead costs: $2,844.44 Proportion of overhead costs allocated to purchasing : (20% x $100,000) = $20,000 Calculation of purchasing overhead per purchase order: $20,000 ÷ 100 purchase orders = $200 per purchase order Calculation of purchasing overhead assigned to a job requiring three purchase orders: $200 X 3 purchase orders = $600 Proportion of overhead costs allocated to material handling : (60% x $100,000) = $60,000 Calculation of material handling overhead per shipment to job site: $60,000 ÷ 200 shipments to job sties = $300 per shipment Calculation of material handling overhead assigned to a job site requiring six deliveries of materials: $300 X 6 deliveries = $1,800 Proportion of overhead costs allocated to quality inspections : (20% x $100,000) = $20,000
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Cengage_Now_Assignment_8_Solutions - Cengage Now Assignment...

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