Zoey, Inc. uses an activity-based cost system. The following ABC rates have alre
ID: 2429541 • Letter: Z
Question
Zoey, Inc. uses an activity-based cost system.
The following ABC rates have already been calculated.
Job 317 has the following inputs.
35 direct labor hours (the direct labor rate is $25 per hour)
30 pounds of materials (the material cost is $5 per pound)
8 setups
12 machine hours
A. Enter the total amount of overhead applied to this job.
B. Compute the total cost of the job, including overhead.
Overhead pools Activity rate Pool A............ $5 per direct labor hour Pool B............ $1000 per setup Pool C........... $2 per machine hourExplanation / Answer
A. overhead applied Total Pool A 5*35 175 Pool B 1000*8 8,000 Pool c 2*12 24 total overhead applied 8199 B. Total cost of job Materials 150 Direct labor 875 overhead applied 8,199 total cost of job 9224
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