Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hansen company uses activity-based costing. the fa

Hansen Company uses activity-based costing. The factory overhead budget for the coming period is $1,053,000,...

80.2K

Verified Solution

Question

Accounting

Hansen Company uses activity-based costing. The factory overhead budget for the coming period is $1,053,000, consisting of the following:

Cost Pool

Budgeted Amount

Supervision

$ 320,000

Machine usage

420,000

Machine setups

187,000

Design changes

126,000

Totals

$1,053,000

The potential allocation bases and their estimated amounts were as follows:

Allocation Base

Budgeted Amount

Number of design changes

35

Number of setups

110

Machine hours

6,000

Direct labor hours

10,000

b.

Job 80130 required $45,000 for direct materials, $20,000 for direct labor, 2,000 direct labor hours, 800 machine-hours, five setups, and four design changes. Determine the cost of Job 80130.

c.

Determine the cost of Job 80130 if Hansen used the direct labor hour method of applying overhead.

d.

What is the reason behind the difference in the costs of the job using activities-based costing vs. the direct labor hour method of applying overhead?

for b. answer is 207900

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students