Julio Manufacturing Company uses activity-based costing. The factory overhead budget for the coming period is...
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Julio Manufacturing Company uses activity-based costing. The factory overhead budget for the coming period is $500,000,consisting of the following cost Pools: Direct labor support- $150,000, Machine support - $200,000, Machine setups - $100,000, Design changes - $ 50,000. The potential allocation bases and their estimated amounts were as follows: Number of design changes - 50, Number of setups- 200, Machine hours - 10,000, Direct labor hours - 20,000. Required:1. Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool. 2. Job 2525 required $25,000 for direct materials, $10,000 for direct labor, 500 direct labor hours, 1,000 machine hours, five setups, and three design changes. Determine the cost of Job2525.
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