If the company uses activity-based costing abc how much
A company has identified the following overhead costs and cost drivers for the coming year:
Budgeted
Overhead Item
Cost Driver
Budgeted Cost
Activity Level
Machine setup
Number of setups
$ 21,000
200
Inspection
Number of inspections
112,500
4,500
Material handling
Number of material moves
90,000
6,000
Engineering
Engineering hours
15,000
600
Budgeted direct labor cost was $190,000 and budgeted direct material cost was $530,000. The following information was collected on three jobs that were completed during the year:
Job 101
Job 102
Job 103
Direct materials
$ 4,500
$ 9,500
$ 5,500
Direct labor
$ 2,100
$ 4,200
Units completed
75
40
100
1
3
15
8
10
20
25
5
If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job 101?
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