Homework SourseDetermine the unit cost for each job using ABC Round cost pe
Determine the unit cost for each job using ABC. Round cost per unit answers to two decimal places when applicable.
Tigertown makes backpacks for large sporting goods chains that are sold under the customers\' store brand names. The Accounting Department has identified the following overhead costs and cost drivers for next year:
Total predicted direct labor hours for next year is 26,000. The following data are for two recently completed jobs:
| Job 201 | Job 202 | |
|---|---|---|
| Direct materials | $Answer | $Answer |
| Direct labor | Answer | Answer |
| Setup cost | Answer | Answer |
| Ordering costs | Answer | Answer |
| Maintenance costs | Answer | Answer |
| Power | Answer | Answer |
| Total job costs | $Answer | $Answer |
| Units produced | Answer | Answer |
| Cost per unit | $Answer | $Answer |
Solution
Calculate activity rate
Determine the unit cost for each job using ABC. Round cost per unit answers to two decimal places when applicable.
| Overhead item | expected cost | cost driver | maximum quantity | activity rate | |
| Setup cost | 244800 | Number of setups | 7200 | 34 per setup | |
| Ordering cost | 65000 | Number of orders | 65000 | 1 per order | |
| Maintenance cost | 460000 |
| 80000 | 5.75 per machine hour | |
| Power | 44000 | Number of kilowatt hours | 4400000 | 0.10 per kilowatt hour | |
