Mortenson & Co. is a construction subcontractor that helps build apartment complexes. The company budgeted the following construction overhead costs for the period:
Mortenson has two service departments (Materials Handling and Equipment Maintenance) and two production departments (Cement and Framing). Budgeted yearly information for these departments is as follows:
Lease and Indirect Materials costs are allocated to each department based on number of vehicles used by the department. Equipment Maintenance costs are allocated based on equipment hours, and Materials Handling costs are allocated based on direct labor hours. Cement costs are allocated to jobs based on direct labor hours, and Framing costs are allocated based on equipment hours.
Mortenson recently won the bid on a contract to help with 3 new apartment buildings. The requirements for this construction job are as follows:
Direct Materials: $50,000
Direct Labor: 500 hours (200 in Cement, 300 in Binding)
Equipment hours: 120 hours (80 in Cement, 40 in Framing)
What is the total cost of this job? (Do not round intermediate calculations)

Question

Mortenson & Co. is a construction subcontractor that helps build apartment complexes. The company budgeted the following construction overhead costs for the period:
  Mortenson has two service departments (Materials Handling and Equipment Maintenance) and two production departments (Cement and Framing). Budgeted yearly information for these departments is as follows:
  Lease and Indirect Materials costs are allocated to each department based on number of vehicles used by the department. Equipment Maintenance costs are allocated based on equipment hours, and Materials Handling costs are allocated based on direct labor hours. Cement costs are allocated to jobs based on direct labor hours, and Framing costs are allocated based on equipment hours.
Mortenson recently won the bid on a contract to help with 3 new apartment buildings. The requirements for this construction job are as follows:
Direct Materials: $50,000
Direct Labor: 500 hours (200 in Cement, 300 in Binding)
Equipment hours: 120 hours (80 in Cement, 40 in Framing)
What is the total cost of this job? (Do not round intermediate calculations)

Quizplus · Accepted Answer

The Answer of Mortenson & Co. is a construction subcontractor that helps build apartment complexes. The company budgeted the following construction overhead costs for the period:
  Mortenson has two service departments (Materials Handling and Equipment Maintenance) and two production departments (Cement and Framing). Budgeted yearly information for these departments is as follows:
  Lease and Indirect Materials costs are allocated to each department based on number of vehicles used by the department. Equipment Maintenance costs are allocated based on equipment hours, and Materials Handling costs are allocated based on direct labor hours. Cement costs are allocated to jobs based on direct labor hours, and Framing costs are allocated based on equipment hours.
Mortenson recently won the bid on a contract to help with 3 new apartment buildings. The requirements for this construction job are as follows:
Direct Materials: $50,000
Direct Labor: 500 hours (200 in Cement, 300 in Binding)
Equipment hours: 120 hours (80 in Cement, 40 in Framing)
What is the total cost of this job? (Do not round intermediate calculations)