Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver
Materials handling $ 160,000 3,200 pounds
Weight of materials Machine setup 13,260 390 setups
Number of setups Machine repair 1,380 30,000 machine hours
Machine hours Inspections 10,560 160 inspections
Number of inspections
Requirements for Job #971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours 15,000 machine hours
Inspections 15 inspections
Using ABC, the materials handling overhead cost assigned to Job #971 is:
a. $2,300
b. $990
c. $6,500
d. $690
e. $1,020
Answers: 1
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Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the follow...
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