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Using activity-based costing (ABC), compute the following: •Manufacturing overhead cost per job •Manufacturing overhead per part Using the traditional base of machine hours, compute the following: •Manufacturing overhead cost per job •Manufacturing overhead per part Calculate the selling price for each part using both ABC and the traditional method of allocation of manufacturing overhead.
Please see below information for this question.
Total activity costs
$209,000
$151,200
$130,400
$100,000
$101,400
$23,000
$80,000
$795,000
Small customer job
Large customer job
Set-up hours
3
10
Engineering hours
2
6
Programming hours
1
8
Defective units
20
Inspection hours
Machine hours
2,000
200
Prime costs
$14,000
$1,600
Other data:
Job size
1,000 parts
100 parts
Quarterly jobs (orders)
15
100
Overhead rate
$14.30 per machine hour
$14,30 per machine hour
Sales support per part#
$1.07
$6.40
Optional Information: System of Law: Other Already Tried: Not familiar with this accounting question
Hi dear,I have gone thru to your question, please advise your deadline?
Tonight! I have completed the theory based part, this part I cannot get around.
Thanks so much :-)
hopefully will get back with solution
thankyou so much
No problem
Hi John, How are you going with the answer? Thanks :)
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Experience: ACCA
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