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determining job costs using abc method job 401k required 5 000 for direct materials 729442

Determining job costs, using ABC method

Job 401k required $5,000 for direct materials, $2,000 for direct labor, 200 direct labor hours, 100 machine hours, two setups, and three design changes. The cost pools and overhead rates for each pool follow:

 

Cost Pool

Overhead Rate

Assembly support

$5/direct labor hour

Machining support

$10/machine hour

Machine setups

$250/setup

Design changes

$500/design change

Determine the cost of Job 401k.

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