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In: Accounting

The Company makes plain jobs and fancy jobs. Each plain job requires $100 of direct materials,...

The Company makes plain jobs and fancy jobs. Each plain job requires $100 of direct materials, $150 of direct labor, and 4 machine hours. Each fancy job requires $200 of direct materials, $300 of direct labor, and 7 machine hours. The company has $450,000 of total overhead for the year. Currently, the company charges all of the overhead to jobs based on machine hours. During the year, there are 2,000 plain jobs and 1,000 fancy jobs. Using this simplified cost system, compute the total cost of one fancy job (DM + DL + OH). Do NOT put a dollar sign in your answer and round it to the nearest cent (in other words, 2 decimal places), if needed.

Refer to the previous question. Now the company is considering using an activity-based costing system. The overhead will be split into three cost pools. Pool 1 consists of machine setup costs of $90,000 and will be charged to jobs using the number of machine setups. During the year, there are 200 machine setups for plain jobs and 400 machine setups for fancy jobs. Compute the amount of machine setup cost that would be charged to EACH fancy job. I am not asking for total cost here, just the machine setup costs per fancy job. Again. do NOT put a dollar sign in your answer and round it to the nearest cent (2 decimal places) if needed.

Still looking at the Company from above, Cost Pool #2 is factory administrative costs and is charged to jobs using direct labor cost. There are $144,000 in this cost pool. Compute the amount of factory administrative cost that would be charged to EACH fancy job. Do NOT put a dollar sign in your answer and round to the nearest cent (2 decimal places) if needed.

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ekkarill92 answered 1 year ago
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