Problem 13 - The Jaguars Football team relies on information from its activity-b
ID: 2445107 • 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
Working Note
Working Note
Cost of materials,programs, give aways $26,000 Total Direct Labour Cost: 3000 hours*$9.20 $27,600 Total Overhead Cost (W.N.) $12,900 Total Cost of Jags Redskins game $66,500