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Zippy Company uses ABC to accounting for costs in it's manufacturing process. They have identified three manufacturing activities that incur manufacturing overhead costs: Materials handling, machine setups and general factory facility support. They have determined the costs of these activities and the allocation bases to be as shown below. Calculate the total overhead allocated to JOB 510, which has 405 parts, 10 setups, and 58 direct labor hours. (note: when calculating your overhead rates, round them to four decimal places before calculating the cost of the job, for example, 23.3125). Round all calculations including your final answer to four decimal places.

Activity Overhead Cost Allocation Base
Materials Handling $6732 Number of parts, 3200 total parts anticipated
Machine Setup $10128 Number of setups, 25 total setups anticipated
General Facilities $95446 Direct Labor Hours, 1000 total hours anticipated

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9966200

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