Blackie Manufacturing Company Uses Activity-Based Costing The Potential Allocation Bases and Their Estimated Amounts Were as Coming

Essay

Blackie Manufacturing Company uses activity-based costing.The overhead budget for the coming period is $1,053,000,consisting of the following: $\begin{array}{lr}&\text { Budgeted }\\\text { Cost Pool }&\text { Amount }\\\text { Supervision } & \$ 320,000 \\\text { Machine usage } & 420,000 \\\text { Machine setups } & 187,000 \\\text { Design changes } & 126,000 \\\text { Totals } & \$ 1,053,000 \\\hline\end{array}$ The potential allocation bases and their estimated amounts were as follows: $\begin{array}{lr}\text { Allocation } & \text { Budgeted } \\\text { Base } & \text { Amount }\\\text { Number of design changes } & 35 \\\text { Number of setups } & 110 \\\text { Machine hours } & 6,000 \\\text { Direct labour hours } & 10,000\end{array}$ A. Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool.
Job 80130 required $\$ 45,000$ for direct materials, $\$ 20,000$ for direct labour, 2,000 direct
B. labour hours, 800 machine hours, five setups, and four design changes. Determine the cost of Job 80130.