Question

Please show the each calculate step, thank you A company has identified the following budgeted overhead costs and budgeted cost drivers for next year:
Activity		Budgeted Activity cost	Cost Driver	Quantity
Material Handling		$120,000	Number of moves	3,000
Ordering costs		70,000	Number of orders	50,000
Maintenance		200,000	Machine hours	80,000
Power		310,000	Kilowatt hours	310,000
Total Activity Cost		$700,000
The following job completed during the year:
		Job 400
Direct Materials		$22,000
Direct labor		$6,000
Units completed		4,000
Direct labor hours		300
Number of moves		40
Number of orders		30
Machine hours		250
Kilowatt hours		200
The company's normal activity is				70,000	direct labor hours for the year.
The company determines the selling price per job by using a markup of				18%	above cost of the job
a. What is the plantwide rate based on direct labor hours as the cost driver.
b. Determine the overhead applied to Job 400 if a company is using the plantwide approach.
c. Determine the total cost of the job and unit cost of the job using direct labor hours to apply overhead.
Job =
Per Unit =
d. What is the selling price of the job using the plantwide approach to handle overhead?
e. If the company was thinking about using ABC, compute the activities rates for the 4 activities set out above and listed below.
f. Determine the overhead applied to Job 400 using the ABC approach.
g. Determine the total cost the job and the unit cost of the job using the ABC approach.
h. What is the selling price of the job using the ABC approach to handle overhead?
I. Which method produces the more accurate cost assignment? Why?

Answer 1