ABC Inc. Has two categories of overhead , Purchasing and Delivering Cost expecte
ID: 2414961 • Letter: A
Question
ABC Inc. Has two categories of overhead , Purchasing and Delivering Cost expected for these activities for the coming year are as follows: Purchasing = $600,000; Delivering = $900,000. The maximum number of Purchase orders for all jobbs during the year is 75,000 snd the maximum number of deliveries is 4,500. These are appropriate cost drivers for both Purchasing and Delivering respectively.
The following data have bben assembled for use in developing a bid for a proposed juob. Direct Materials = $6,000 Direct Labor = $2,400 Number of purchase ordes = 1,500 Number of deliveries =12
Direct labor hours= 2,400. Using the appropriate cost drivers, the total cost of the potential job is? SHOW SOLUTION STEP BY STEP.
Explanation / Answer
THE TOTAL COST OF THE POTENTIAL JOB:
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Particulars $__________