FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Hansen Company uses activity-based costing.  The factory overhead budget for the coming period is $1,053,000, consisting of the following:

Cost Pool

Budgeted Amount

Supervision

$  320,000

Machine usage

   420,000

Machine setups

   187,000

Design changes

   126,000

Totals

$1,053,000

The potential allocation bases and their estimated amounts were as follows:

Allocation Base

Budgeted Amount

Number of design changes

    35

Number of setups

   110

Machine hours

 6,000

Direct labor hours

10,000

a.

Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool.

b.

Job 80130 required $45,000 for direct materials, $20,000 for direct labor, 2,000 direct labor hours, 800 machine-hours, five setups, and four design changes.  Determine the cost of Job 80130.

c.

Determine the cost of Job 80130 if Hansen used the direct labor hour method of applying overhead.

d.

What is the reason behind the difference in the costs of the job using Activities-based costing vs. the direct labor hour method of applying overhead?

 

need help for C and D. for B answer is 207900

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