Jarcly Manufacturing Company uses activity-based costing. The factory overhead budget for the coming period is $1,053,000, consisting of the following: The potential allocation bases and their estimated amounts were as follows:
a.Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool.
b.Job 80130 required $45,000 for direct materials, $20,000 for direct labor, 2,000 direct labor hours, 800 machine hours, five setups, and four design changes. Determine the cost of Job 80130.

Question

Jarcly Manufacturing Company uses activity-based costing. The factory overhead budget for the coming period is $1,053,000, consisting of the following:  The potential allocation bases and their estimated amounts were as follows:  
a.Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool.
b.Job 80130 required $45,000 for direct materials, $20,000 for direct labor, 2,000 direct labor hours, 800 machine hours, five setups, and four design changes. Determine the cost of Job 80130.

Quizplus · Accepted Answer

The Answer of Jarcly Manufacturing Company uses activity-based costing. The factory overhead budget for the coming period is $1,053,000, consisting of the following:  The potential allocation bases and their estimated amounts were as follows:  
a.Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool.
b.Job 80130 required $45,000 for direct materials, $20,000 for direct labor, 2,000 direct labor hours, 800 machine hours, five setups, and four design changes. Determine the cost of Job 80130.

Jarcly Manufacturing Company Uses Activity-Based Costing