Lisa has been allocating Manufacturing Overhead (MOH) costs…

Written by Anonymous on September 7, 2024 in Uncategorized with no comments.

Questions

Lisа hаs been аllоcating Manufacturing Overhead (MOH) cоsts tо her products using a single plant-wide rate of $15.00 per Direct Labor (DL) hour. A recent job required 352 DL hours, 44 production runs, 26 quality inspections, and 21 factory supervisor hours. Based on the increased activity, the accountants are suggesting a transition to Activity-Based Costing (ABC) and have suggested the following rates: Materials Handling: $9.20 per direct labor hour Production Setup: $18.00 per production run Quality Inspections: $5.00 per inspection Factory Supervisor: $12.10 per supervisor hour Assuming that Lisa makes the switch to ABC, what are the total MOH costs allocated to the most recent production run?

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