activity based costing

Activity based - Cost Drive Budgeted Cost Budgeted Activity Level Machine Setup Number of Setups $20,000 200 Inspection Number of inspections

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A company has identified the following overhead costs and cost drivers for the coming year. 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: a) If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101? b). If the company uses activity-based costing (ABC), what is the cost of each unit of Job 102? Overheahead Item
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Unformatted text preview: Cost Drive Budgeted Cost Budgeted Activity Level Machine Setup Number of Setups $20,000 200 Inspection Number of inspections $130,000 6,500 Material handing Number of material moves $80,000 8,000 Engineering Engineering hours $50,000 1,000 Job 101 Job 102 Job 103 Direct materials $5,000 $12,000 $8,000 Direct labor $2,000 $2,000 $4,000 Units completed 100 50 200 Number of setups 1 2 4 Number of inspections 20 10 30 Number of mat'l moves 30 10 50 Engineering hours 10 50 10...
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This note was uploaded on 06/07/2011 for the course ACCT 5230 taught by Professor Mel during the Spring '11 term at Uni. Lincoln.

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Activity based - Cost Drive Budgeted Cost Budgeted Activity Level Machine Setup Number of Setups $20,000 200 Inspection Number of inspections

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