57000 2000 300000100000 63000 Mannitou Company made the following predictions

# 57000 2000 300000100000 63000 mannitou company made

• Homework Help
• 11
• 95% (78) 74 out of 78 people found this document helpful

This preview shows page 10 - 11 out of 11 pages.

57,000 + [2,000 × (300,000/100,000)] = \$63,000 Mannitou Company made the following predictions for 2016: Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2,000 machine hours, and \$57,000 of prime costs. Refer to Figure 4-4. If factory overhead is applied based on direct labor hours, the cost of Job A2 for the Mannitou Company is \$75,000 CALCULATIONS: \$57,000 + [3,000 × (\$300,000/50,000)] = \$75,000 The Gardenview Corporation has identified the following overhead costs and activity drivers for next year: Factory overhead costs \$300,000 Direct labor hours 50,000 hours Machine hours 100,000 hours Factory overhead costs \$300,000 Direct labor hours 50,000 hours Machine hours 100,000 hours
The following are two of the jobs completed during the year: The company's normal activity is 2,000 direct labor hours. Refer to Figure 4-12. If the four activity drivers are used to allocate overhead costs, total overhead allocated to Job 6A would be 5030 SUPPORTING CALCULATIONS: Setups (\$200,000/250) \$800 per setup Ordering costs (\$80,000/1,600) \$50 per order Maintenance (\$400,000/2,000) \$200 per machine hour Power (\$40,000/40,000) \$1.00 per kilowatt hour Setups (\$800 × 1) \$ 800 Ordering costs (\$50 × 4) 200 Maintenance (\$200 × 20) 4,000 Power (\$1.00 × 30) 30 Total overhead \$5,030