Blackie Manufacturing Company Uses Activity-Based Costing The Potential Allocation Bases and Their Estimated Amounts Were as for the Coming

Blackie Manufacturing Company uses activity-based costing. The manufacturing overhead budget for the coming period is $1,053,000, consisting of the following: $\begin{array}{lr}&\text { Budgeted }\\\text { Cost Pool }&\text { Amount }\\\text { Supervision } & \$ 320,000 \\\text { Machine usage } & 420,000 \\\text { Machine setups } & 187,000 \\\text { Desion changes } & 126,000\\\text { Totals } & \$ 1,053,000\end{array}$ The potential allocation bases and their estimated amounts were as follows: $$\begin{array} { l r } \text { Allocation } &\text { Budgeted } \\\text { Base } & \text { Amount } \\\hline \text { Number of design changes } & 35 \\\text { Number of setups } & 110 \\\text { Machine hours } & 6,000 \\\text { Direct labour hours } & 10,000\end{array}$$ A. Determine the manufacturing overhead rate for each cost pool, using the most appropriate allocation base for each pool.
B. Job 80130 required $45,000 for direct materials, $20,000 for direct labour, 2,000 direct labour hours, 800 machine hours, five setups, and four design changes. Determine the cost of Job 80130.

Correct Answer:

Verified

A. Supervision: $320,000/10,000 = $32 --...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free