Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. metal works corporation has a significant level of

Metal Works Corporation has a significant level of manufacturing overhead. After preparing their budget for...

80.2K

Verified Solution

Question

Accounting

imageimage

Metal Works Corporation has a significant level of manufacturing overhead. After preparing their budget for the next year, management expects the following overhead costs (the cost driver for each overhead cost pool is also shown): Activity Total Cost Cost Driver Maintenance $25,000 Machine hours Materials receiving 60,000 Shipments received Machine setups 10,000 # of setups Inspection 24,000 # of inspections The expected activity for the year for various cost drivers is: Direct Labor Hours 40,000 Machine hours 12,500 Shipments Received 5.000 Setups 100 Quality inspections 8,000 The company is considering accepting a significant production contract, Estimates for the contract are as follows: Direct materials $120,000 Direct labor (800 hours) $160,000 Number of material shipments received 250 Number of inspections 400 Number of setups 10 Number of machine-hours 1,500 NOTE: Round all per-unit costs to nearest cent. How much overhead should be allocated to the contract based on Activity-Based Costing? NOTE: Round all per-unit costs to nearest cent. How much overhead should be allocated to the contract based on Activity-Based Costing? Select one: a. $2,380 b. $4,800 C. $5,300 d. $8,200 e. None of the above

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