Q42PGB_1 Rennie Plant Service completed a... [FREE SOLUTION]

Chapter 19: Q42PGB_1 (page 1081)

Rennie Plant Service completed a special landscaping job for Brenton Company. rennie uses ABC and has the following predetermined overhead allocation rates:
Activity Predetermined
Allocation Base Overhead Allocation Rate
Designing Number of designs $ 290 per design
Planting Number of plants $ 20 per plant
The Rennie job included $1,500 in plants; $800 in direct labor; one design; and 30 plants.
Requirements
1. What is the total cost of the Brenton job?

Expert verified

Total cost of Brenton job: $1,690

$Design cost = No . of designs 脳 Predetermined over head allocation rate = 1 脳 $ 290 = $ 290$

role="math" localid="1653289750404" $Planting cost = No . of plants 脳 Predetermined overhead allocation rate = 30 脳 $ 20 = $ 600$

role="math" localid="1653289898905" $Total overhead cost = Design cost + Planting cost = $ 290 + $ 600 = $ 890$

$Total cost = Direct labor cost + Total overhead cost = $ 800 + $ 890 = $ 1, 690$

Unlock Step-by-Step Solutions & Ace Your Exams!

Over 30 million students worldwide already upgrade their learning with 91影视!

All the tools & learning materials you need for study success - in one app.

Recommended explanations on Business Studies Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Activity	Budgeted Cost of Activity	Allocation Base	Predetermined Overhead Allocation Rate

Materials handling	\( 240,000	Number of parts	\)1.00
Assembly	3,500,000	Number of assembling direct labor hours	17.00
Finishing	190,000	Number of finished units*	4.50

Product	Total Units Produced	Total Direct materials Costs	Total Direct Labor Costs	Total Number of Parts	Total Assembling Direct Labor Hours

Standard bookcase	7,000	\(91,000	\)105,000	28,000	10,500
Unfinished bookcase	7,500	82,500	75,000	22,500	7,500