Reference no: EM132709578
Activity-Based Costing Overhead Rates.
Assume that manufacturing overhead for Windsor Company in the previous exercise consisted of the following activities and costs:
Setup (1,000 setup hours) $92,000
Production scheduling (300 batches) $24,000
Production engineering (70 change orders) $70,000
Supervision (2,200 direct labor hours) $66,000
Machine maintenance (13,000 machine hours) $78,000
Total activity costs $330,000
The following additional data were provided for Job 845:
Direct materials costs $6,000
Direct labor cost (5 Milling direct labor hours, 25 Finishing direct labor hours) $1,000
Setup hours 5 hours
Production scheduling 1 batch
Machine hours used (15 Milling machine hours; 5 Finishing machine hours) 20 hours
Production engineering 2 change orders
Questions:
Problem 1). Calculate the cost of Job 845 using the Plantwide Overhead Rate based on machine hours.