Problem 13 - The Jaguars Football team relies on information from its activity-b
ID: 2444424 • Letter: P
Question
Problem 13 - The Jaguars Football team relies on information from its activity-based costing system when setting prices for special events. Three ABC rates are used: Security service, $5,000 per event, General overhead, $500 per scheduled hour of event, and Facility setup/tear down, $3,200 per setup or tear/down. The Jags-Redskins game incurred the following costs: Cost of materials, programs, giveaways, $26,000. Total direct labor hours worked, 3,000. Average direct labor rate, $9.20 per hour. The football game was scheduled from 1:00 to 4:00 pm and required one setup and one tear down. How much is the total cost of Jags-Redskins game?
Explanation / Answer
Total cost of Jags-Redskins game = Cost of materials + Direct labor cost + Security service overhead + General overhead + Facility setup/tear down
Total cost of Jags-Redskins game = 26000 + 3000*9.20 + 5000*1 + 500*3 + 3200*1
Total cost of Jags-Redskins game = $ 63,300