FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Metal Company budgeted $572,000 manufacturing direct wages, 2,500 direct labor hours, and had the following manufacturing overhead:
Budgeted Level for Cost
Driver
Overhead Cost Pool
Materials handling
Machine setup
Machine repair
Inspections
Direct labor
Direct materials
Machine setup
Machine hours
Inspections
Requirements for Job # 971 which manufactured 4 units of product:
Multiple Choice
O $550.
O
Budgeted Overhead
The total overhead of Job # 971 under the Activity-Based Costing costing is:
$11,435.
Cost
$ 196,000
19,600
1,600
16,500
$185.
20 hours
220 pounds
30 setups
16,700 machine hours
15 inspections
4,900 pounds
560 setups
32,000 machine hours
330 inspections
Overhead Cost Driver
Weight of materials
Number of setups
Machine hours
Number of inspections
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