Question

TB MC Qu. 5-63 Wings Co. budgeted $555,600 manufacturing ...

Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver
Materials handling $ 160,000 3,200 pounds Weight of materials
Machine setup 13,260 390 setups Number of setups
Machine repair 1,380 30,000 machine hours Machine hours
Inspections 10,560 160 inspections Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
Using ABC, overhead cost assigned to Job #971 for machine setup is:_________

Answer 1

Answer: $1,020

Step-by-step explanation:

= Machine setup for Job 971 * Budgeted machine setup cost

Budgeted Machine setup cost = 13,260/390 setups

= $34 per setup

Overhead cost for Job 971 is:

= 34 * 30

= $1,020