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  3. a company has identified the following overhead co

A company has identified the following overhead costs and cost drivers for the coming year:...

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Accounting

A company has identified the following overhead costs and cost drivers for the coming year:

Budgeted
Overhead Item Cost Driver Budgeted Cost Activity Level
Machine setup Number of setups $ 5,000 100
Inspection Number of inspections 75,000 5,000
Material handling Number of material moves 50,000 5,000
Engineering Engineering hours 10,000 500

Budgeted direct labor cost was $70,000 and budgeted direct material cost was $194,000. The following information was collected on three jobs that were completed during the year:

Job 101 Job 102 Job 103
Direct materials $ 2,000 $ 7,000 $ 3,000
Direct labor $ 1,000 $ 1,000 $ 2,000
Units completed 50 25 150
Number of setups 1 2 2
Number of inspections 10 5 15
Number of material moves 15 5 40
Engineering hours 5 25 8

If the company uses traditional costing and allocates overhead using direct labor cost, what is the cost of each unit of Job 102?

$349.00.

$400.00.

$429.00.

$509.00.

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