Reference no: EM132381919

Question

Activity-based costing: Building bids

Data from the previous year:

HR $40,000

IT 60,000

Maintenance 12,000

Setup costs 30,000

Factory overhead 120,000

Total 262,000

During the year, the firm had 8,000 employees, 1,200 computers, 1,000 production runs, and recorded 3,000 direct labor hours.

To allocate overhead, HR uses employees, IT uses computers, Setup Costs use production runs, and maintenance and factory overhead are allocated based on direct labor hours.

Job 15 is expected to use 20 employees, 15 computers, 10 production runs and 200 direct labor hours.

How much overhead should be allocated to Job 15 using activity-based costing?