Solution-Compute the total cost for this job

Compute the total cost for this job

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Reference no: EM132865015

Question - The manufacturing company prepares the following budget for 2020.

	Machining	Finishing
Factory overhead	$96,000	$200,000
Machine hours	6000	840
Direct labour cost	$60,000	$400,000

This company uses a predetermined overhead rate for applying overhead based on machine hours for 'machining' and direct labour cost for 'finishing'.

You are given the following actual information about one job:

	Machining	Finishing
Direct materials used	$11,000	$3,000
Machine hours	300	40
Direct labour cost	$10,000	$20,000

Required -

(1) Compute the total cost (full cost) for this job.

(2) Why we need to develop Activity-based costing.

Reference no: EM132865015

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Compute the total cost for this job

Reference no: EM132865015

Reference no: EM132865015

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