Question

Tiger Company has identified the following overhead costs and cost drivers for next year: Overhead Item...

Tiger Company has identified the following overhead costs and cost drivers for next year:

Overhead Item

Expected Costs

Cost Driver

Maximum Quantity

Setup costs

$583,200

Number of setups

2,400

Ordering costs

270,000

Number of orders

20,000

Maintenance

928,000

Machine-hours

32,000

Power

90,000

Kilowatt-hours

200,000

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.

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