activity- based costing Fabreeze Manufacturing Co. uses activity- based - 12513

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Question:


Determining job costs, using activity- based costing Fabreeze Manufacturing Co. uses activity- based costing.

The factory overhead budget for the coming period is $ 500,000, consisting of the following:

Cost Pool Budgeted Amount Direct labor . . . 

Machine support . 

Machine setups

Design changes .

Total.. . . . . . . . . .

The potential allocation bases and their estimated amounts were as follows:

Cost Pool 

Number of design changes. . 50

Number of setups . . . . . . . . 200

Machine hours . . . . . . . 10,000

Direct labor hours . . . . . . 20,000

1. Determine the overhead rate for each cost pool, using the most appropriate

allocation base for each pool. ( Use each allocation base only once.)

2. Job 2525 required $ 25,000 for direct materials, $ 10,000 for direct labor, 500 direct labor hours, 1,000

machine hours, five setups, and three design changes. Determine the cost of Job 2525.

 

 

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