Based on the information above: 1. what is the cost per unit for Job...
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Accounting
Based on the information above:
1. what is the cost per unit for Job #971 if Wings uses a volume-based overhead rate based on direct labor hours and
2. what is the cost per unit for Job #971 if Wings uses activity based costing.
3. explain why there is a difference in the figures you computed in 1. and 2. above.
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead CostBudgeted Level for Cost Driver Overhead Cost Driver Materials handling 160,000 3,200 poundsWeight of materials Machine setup 13,200 390 setups Number of setups Machine repair 1,380 30,000 machine hours Machine hours Inspections 10,560 160 inspections Number of inspections The requirements for Job #971, which manufactured 6 units of product are: Direct labor 30 hours 195 pounds Direct materials Machine setup 45 setups Machine hours 22,500 machine hours Inspections 25 inspections The direct labor cost for Job #971 is $5,700 and direct materials costs are $16,700
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