A firm called The Company of Fools budgets the following overhead costs. ...
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Accounting
A firm called The Company of Fools budgets the following overhead costs.
Budgeted cost
Administration
$500,000
Shop Supplies
$300,000
Machinery
$200,000
This firm uses activity-based costing, with the following percentage table to develop activity cost pools.
Activity Cost Pool
Molding
Remolding
Re-Remolding
Other
Administration
10%
20%
20%
50%
Shop Supplies
40%
40%
20%
0%
Machinery
20%
30%
30%
20%
In The Company of Fools, they budget the following activity drivers for activity cost pools.
Activity Cost Pool
Molding
Remolding
Re-Remolding
Other
Budgeted activity driver
10,000
16,000
5,000
n/a
The Necio Job consumes $500 in direct costs, 3 units of the Molding activity driver, 5 units of the Re-molding activity driver and 10 units of the Re-Remolding activity driver.
What is the total job cost for the Necio job?
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