Ironman Manufacturing Company uses ABC. The FOH budget for the coming period is $1,000,000 consisting...
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Ironman Manufacturing Company uses ABC. The FOH budget for the coming period is $1,000,000 consisting of the following: Cost Pool Budgeted amount Supervision $ 300,000 Machine Usage 400,000 Machine Setups 200,000 Design Changes 100,000 $ 1,000,000 The potential allocation bases and their estimated amounts were as follows: Allocation Base Budgeted Amount Number of design changes 25 Number of setups 100 Machine hours 5,000 Direct labor hours 10,000 Instructions: Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool. b. Job 90210 required $50,000 for direct materials, $20,000 for direct labor, 2,000 direct labor hours, 1,000 machine hours, six setups, and five design changes. Determine the cost of Job 90210
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