LO.1 & LO. 3-LO.5 (Activity analysis, ABC; pricing; cost drivers; decision making Hurley Corporation has identified the following overhead costs and cost drivers for th coming year: Budgeted Cost Budgeted Activity Level Overhead Item Cost Driver Machine setup Number of setups $ 20,000 200 Inspection Number of inspections 130,000 6,500 Material handling Number of material moves 80,000 8,000 Engineering Engineering hours 50,000 1,000 $280,000 The following information was collected on three jobs that were completed dur- ing the year: Job 101 Job 102 Job 103 Direct material $5,000 $12,000 $8,000 Direct labor $2,000 $ 2,000 $4,000 Units completed 100 50 200 Number of setups 1 2 4 Number of inspections 20 10 30 Number of material moves 30 10 50 Engineering hours 10 50 10
LO.1 & LO. 3-LO.5 (Activity analysis, ABC; pricing; cost drivers; decision making Hurley Corporation has identified the following overhead costs and cost drivers for th coming year: Budgeted Cost Budgeted Activity Level Overhead Item Cost Driver Machine setup Number of setups $ 20,000 200 Inspection Number of inspections 130,000 6,500 Material handling Number of material moves 80,000 8,000 Engineering Engineering hours 50,000 1,000 $280,000 The following information was collected on three jobs that were completed dur- ing the year: Job 101 Job 102 Job 103 Direct material $5,000 $12,000 $8,000 Direct labor $2,000 $ 2,000 $4,000 Units completed 100 50 200 Number of setups 1 2 4 Number of inspections 20 10 30 Number of material moves 30 10 50 Engineering hours 10 50 10
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...
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