The company uses ABC and has determined the following activities, cost drivers and activity rates
Activity Center |
Activity Driver |
Activity rate |
Direct labor usage |
Direct labor hours |
$3 per DL hr |
Machine usage |
Machine hours |
$8 per machine hr |
Machine setups |
Setups |
$200 per set up |
Design changes |
Design changes |
$400 per design change |
You have completed Job 101. Determine the cost of Job 101, if the job required $1,000 in Direct Material, $3,000 in Direct Labor, 500 direct labor hours, 75 machine hours, 2 setups and 1 design change.
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