A local picnic table manufacturer has budgeted these overhead costs: Purchasing $77,000 Handling Materials 34,320 Machine Setups 73,600 Inspections 30,000 Utilities 34,000 They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Cost Driver Activity Orders 700 Material Moves 1,320 Machine Setups 16,000 Number of Inspections 6,000 Square Feet 170,000 Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20.   Activity Order, Units 1,000 Direct Materials 112,600 Machine Hours 15,300 Direct Labor Hours 5,200 Number of Purchase Orders 70 Number of Material Moves 850 Number of Machine Setups 100 Number of Inspections 500 Number of Square Feet Occupied 7,000 Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number.   Cost Assigned Direct Materials   $fill in the blank 1   Direct Labor   fill in the blank 2   Number of Material Moves   fill in the blank 3   Number of Machine Setups   fill in the blank 4   Number of Inspections   fill in the blank 5   Number of Square Feet Occupied   fill in the blank 6   Total Order Cost

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 3PA: A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting...
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A local picnic table manufacturer has budgeted these overhead costs:

Purchasing $77,000
Handling Materials 34,320
Machine Setups 73,600
Inspections 30,000
Utilities 34,000

They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown:

Cost Driver Activity
Orders 700
Material Moves 1,320
Machine Setups 16,000
Number of Inspections 6,000
Square Feet 170,000

Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20.

  Activity
Order, Units 1,000
Direct Materials 112,600
Machine Hours 15,300
Direct Labor Hours 5,200
Number of Purchase Orders 70
Number of Material Moves 850
Number of Machine Setups 100
Number of Inspections 500
Number of Square Feet Occupied 7,000

Determine how much the job would cost given the following activities: Do not round intermediate computations and round final answers to nearest whole number.

  Cost Assigned
Direct Materials   $fill in the blank 1  
Direct Labor   fill in the blank 2  
Number of Material Moves   fill in the blank 3  
Number of Machine Setups   fill in the blank 4  
Number of Inspections   fill in the blank 5  
Number of Square Feet Occupied   fill in the blank 6  
Total Order Cost

 

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