Question

Wings Co. budgeted $569,000 manufacturing direct wages, 2,500 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 $ 184,000 4,600 pounds Weight of materials Machine setup 15,900 530 setups Number of setups Machine repair 1,200 30,000 machine hours Machine hours Inspections 21,000 300 inspections Number of inspections Requirements for Job #971 which manufactured 4 units of product: Direct labor 20 hours Direct materials 190 pounds Machine setup 40 setups Machine hours 16,400 machine hours Inspections 15 inspections The total overhead of Job #971 under the ABC costing is: ?

• $155.

• $510.

• $1,970.

• $2,740.

• $10,506.

Answer 1