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Mansfield Manufacturing Co uses ABC The factory overhead bud- get for the coming period is $750000 consisting of the following Cost Pool Budgeted Amount Direct labor facility and support

Mansfield Manufacturing Co. uses ABC. The factory overhead bud- get for the coming period is $750,000, consisting of the following: Cost Pool Budgeted Amount Direct labor facility and support...................... $300,000 Machine support.............................................. 250,000 Material movement........................................... 125,000 Engineering...................................................... 75,000 Total................................................................. $750,000 The potential allocation bases and their estimated amounts were as follows: Cost Pool Budgeted Amount Number of component parts............................ 75 Number of material moves............................... 400 Machine hours.................................................. 10,000 Direct labor hours............................................. 25,000 Required: 1. Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool. (Use each allocation base only once.) 2. Job 007 required $15,000 for direct materials, $20,000 for direct labor, 800 direct labor hours, 1,200 machine hours, six setups, and four component parts. Determine the cost of Job 007. 3. Assume Mansfield used the direct labor hour method to apply factory overhead to Job 007.

Apr 24 2020 View more View Less

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