Salari Industries, a small, family-run manufacturer, has adopted an ABC system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been estimated for the year:
During May, Larry and Civilla Salari machined and assembled Job 405. Larry
worked a total of 11 hours on the job, while Civilla worked 6 hours on the job. Larry is paid a $25 per hour wage rate, while Civilla is paid $29 per hour because of her additional experience level. Direct materials requisitioned for Job 405 totaled $1,075. The following additional information was collected on Job 405: The job required 3 machine setups, 4 machine hours, and 3 quality control tests.
REQS:
1. Compute the activity cost allocation rates for the year.
2. Complete the job cost record for Job 405.