Determine the unit cost for each job using ABC. Round cost per unit answers to t

Question

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

Explanation / Answer

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 Number of machine hours 80000 5.75 per machine hour Power 44000 Number of kilowatt hours 4400000 0.10 per kilowatt hour

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.