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. 14.2KB/S 3:16 25% Edit 12 X PROBLEM The annual MOH budget is...

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. 14.2KB/S 3:16 25% Edit 12 X PROBLEM The annual MOH budget is equal to $1,000,000 based on an annual level of activity of 5,000 DLH There are two job orders: job order 701 (500 units), and job order 702 (2,000 units). One unit of the product requires 2 DLH. Activity pool OH budget Planned level of activity Machine setup $260,000 1,000 setups Quality inspection $250,000 2,500 inspection hours Purchase order $150,000 800 orders Part handling $90,000 30,000 parts MH $250,000 50,000 hours Activity pool Job order 701 Job order 702 Machine setup 500 setups 500 setups Quality inspection 1500 inspection hours 1000 inspection hours Purchase order 300 orders 500 orders Part handling 25,000 parts 5,000 parts MH 20,000 hours 30,000 hours Required: Calculate the per unit cost for both orders (701 and 702) using the traditional method and the ABC analysis. DD Tools Mobile View Share Edit on PC

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