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Whispering Winds Delights manufactures a wide variety of holiday and seasonal decorative items. Whispering Winds's activity-based costing overhead rates are:
Purchasing $397 per order
Storing $2per square foot/days
Machining$100per machine hour
Supervision $5per direct labor hour
The Snow Man project involved 3 purchase orders, 5,700 square feet/days, 77 machine hours, and 57 direct labor hours. The cost of direct materials on the job was $20,700 and the direct labor rate is $33 per hour.
Problem 1: Determine the total cost of the Snow Man project.
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