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Q 36PGA-1

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Horngren'S Financial And Managerial Accounting
Found in: Page 1077

Short Answer

Question: Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette 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 Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants.

Requirements

1. What is the total cost of the Kerry job?

Answer

Total cost of Kerry job: $2,190

See the step by step solution

Step by Step Solution

Step 1: Total overhead cost

Step 2: Total cost of Kerry job

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