If the company uses traditional costing and allocates

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Reference no: EM13577884

Acme Enterprises has identified the following overhead costs and cost drivers for the coming year:

Overhead Item Cost Driver Budgeted Cost Bugeted Activity Level

Quality Number of Inspections $125,000 2,500

Engineering Engineering Hours 100,000 2,500

Machine Setup Setup Hours 90,000 400

Material handling Num of material moves 85,000 1,000

Budgeted direct labor cost was $200,000 and budgeted direct material cost was $300,000. The following information was collected on three jobs that were completed during the month:

Job A Job B Job C

Direct materials $5,000 $2,800 $8,000

Direct labor $4,000 $4,000 $8,000

Units completed 200 100 300

Number of inspections 20 10 20

Number of material moves 60 20 80

Engineering hours 10 50 10

Number of setups 13 25 18

Required

a. If the company uses traditional costing and allocates overhead using direct labor cost, how much overhead cost should be assigned to Job A, B, and C?
b. If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job A, B, and C??
??

Reference no: EM13577884

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