Company uses activity, If the company uses activity-based

Company uses activity

Assignment Help Financial Accounting

Reference no: EM13928777

A company has identified the following overhead costs and cost drivers for the coming year:

			Budgeted
Overhead Item	Cost Driver	Budgeted Cost	Activity Level
Machine setup	Number of setups	$ 21,000	200
Inspection	Number of inspections	112,500	4,500
Material handling	Number of material moves	90,000	6,000
Engineering	Engineering hours	15,000	600

Budgeted direct labor cost was $190,000 and budgeted direct material cost was $530,000. The following information was collected on three jobs that were completed during the year:

	Job 101	Job 102	Job 103
Direct materials	$ 4,500	$ 9,500	$ 5,500
Direct labor	$ 2,100	$ 2,100	$ 4,200
Units completed	75	40	100
Number of setups	1	1	3
Number of inspections	15	8	10
Number of material moves	20	8	25
Engineering hours	8	40	5

If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101?

Reference no: EM13928777

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