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 Direct material:s Machine setup Machine hours Inspections 20 hours 130 pounds 30 setupsS 15.000 machine hours 15 inspections Using ABC, overhead cost assigned to Job #971 for machine setup is: $2,300 $990 $6,500 $690 $1,020 Using ABC, overhead cost assigned to Job #971 for machine repair is: $2,300 $990 $6,500 $690 $1,020

Question

contestada

Respuesta :

andromache andromache · Answer 1 · 2021-01-13T02:40:02+01:00

Answer:

the overhead cost assigned to Job 971 is $1,020

Explanation:

The computation of the overhead cost assigned to Job 971 is shown below:

= Budgeted Machine overhead cost ÷ Number of set up

= $13,200 ÷ 390

= 34

Now the overhead cost assigned is

= 30 setups × 34

= $1,020

hence, the overhead cost assigned to Job 971 is $1,020

Therefore the last option is correct

Answer Link

nikitavidya0 nikitavidya0 · Answer 2 · 2022-03-30T05:34:17+02:00

The overhead cost assigned to Job 971 is $1,020 by using the ABC method.

The overhead cost is derived after multiplying the machine setup of Job 971 with the Budgeted machine setup cost.

Here, the budgeted machine setup cost would be;

[tex]\frac{ 13,260}{390} \\=34[/tex]

Thus, the overhead costs would be;

[tex]30*34\\=1020[/tex]

Learn more overhead costs here:

https://brainly.com/question/26511051