Chris has a custom curtain and chair cover shop. The job-costing system was designed using an...

Activity Area Cost Driver Used for Allocation Cost-Allocation Rate
Materials handling Number of pieces in the pattern $2.00 per piece
Stitching Number of pieces in the pattern $25.00 per piece
Assembly/Installation Direct labor hours $15.00 per hour

In October Chris made and installed five sets of curtains and chair covers for clients. A set includes curtains for two windows and coverings for three chairs. The direct labor rate is $20.00 per hour. Cost data for curtains and covers follows:

Direct Direct
Units Material Number Labor
Produced Costs of Pieces Hours
Curtains 10 $2,000 1 20
Chair coverings 15 $3,375 6 90

1).The cost for a set of curtains and chair coverings would be (show the calculations)
a. $5,375. b. $2,385. c. $2,085. d. $1,253.

2).The indirect costs for the shop in October were (show the calculations)
a. $11,925. b. $5,375. c. $4,900. d. $4,350.

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ekkarill92 answered 9 months ago

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