Tiger Company has identified the following overhead costs and cost drivers for next year: | |||||||
Overhead Item | Expected Costs | Cost Driver | |||||
Setup costs | $583,200 | Number of setups | |||||
Ordering costs | 270,000 | Number of orders | |||||
Maintenance | 928,000 | Machine-hours | |||||
Power | 90,000 | Kilowatt-hours | |||||
The following are two of the jobs completed during the year: | |||||||
Job 201 | Job 202 | ||||||
Direct materials | $9,000 | $10,000 | |||||
Direct labor | $12,000 | 7,000 | |||||
Units completed | 750 | 600 | |||||
Direct labor-hours | 45 | 110 | |||||
Number of setups | 6 | 7 | |||||
Number of orders | 8 | 15 | |||||
Machine-hours | 180 | 150 | |||||
Kilowatt-hours | 90 | 120 | |||||
Determine the unit cost for each job using the four cost drivers. (Round to 2 decimal places.) |
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