Mia Company uses activity-based costing and reports the following for this year. Activity Cost Driver Machine hours (MH) Direct labor hours _(DLH) Activity Cutting Budgeted Cost $ 28,000 Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours.
Mia Company uses activity-based costing and reports the following for this year. Activity Cost Driver Machine hours (MH) Direct labor hours _(DLH) Activity Cutting Budgeted Cost $ 28,000 Budgeted Activity Usage 4,000 machine hours Assembly 80,000 8,000 direct labor hours Total $ 108,000 (a) Compute an activity rate for each activity using activity-based costing. (b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 27P: Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming...
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Transcribed Image Text:Required Required
A
Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours.
Activity
Activity Usage
Activity Rate
Allocated
Cost
machine
30
hours
Cutting
Assembly
direct labor
25
hours
Total
< Required A
Required B >
Transcribed Image Text:Mia Company uses activity-based costing and reports the following for this year.
Activity
Cutting
Budgeted Cost
$ 28,000
Activity Cost Driver
Machine hours (MH)
Direct labor hours
(DLH)
Budgeted Activity Usage
4,000 machine hours
Assembly
80,000
8,000 direct labor hours
Total
$ 108,000
(a) Compute an activity rate for each activity using activity-based costing.
(b) Allocate overhead costs to a job that uses 30 machine hours and 25 direct labor hours.
Complete this question by entering your answers in the tabs below.
Required Required
A
В
Compute an activity rate for each activity using activity-based costing.
Activity
Budgeted
Cost
Activity Rate
Budgeted Activity Usage
Cutting
Assembly
Required A
Required B >
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