Envision Company Uses Activity-Based Costing (ABC)for Allocating Manufacturing Overhead Costs

question 10

Essay

Envision Company uses activity-based costing (ABC)for allocating manufacturing overhead costs to jobs and it has established the following cost drivers and rates:
$\begin{array}{lll}\text { Activity}&\text { Cost Driver}&\text { Rate}\\\text { Material handling } & \text { Number of parts used } & \$ 8.00 \text { per part } \\\text { Machine setups } & \text { Number of production runs } & \$ 3,000 \text { per run } \\\text { Assembly and inspection } & \text { Number of direct labor hours } & \$ 20.00 \text { per DLH } \\\text { Quality control } & \text { Number of units inspected } & \$ 5.00 \text { per unit }\end{array}$

During July, Job #2005 produced 1,500 units and required the following activity: 1,800 parts, 2 production runs, and 325 direct labor hours.
(a.)Calculate the amount of manufacturing overhead applied to Job #2005.
(b.)Explain the advantage of using the ABC approach.

Understand the significant impact of government policies and agencies, like the Small Business Administration (SBA), on small businesses.

Recognize different types of mergers and ventures, and their strategic importance in business expansion and competitiveness.

Identify characteristics that define small businesses and differentiate them from larger firms.

Acknowledge the role of technology and online resources in enhancing the competitiveness of small businesses.

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Definitions:

Traits

Characteristics or features of an organism that are inherited from its parents.

Modern Evolutionary Synthesis

A comprehensive theory that integrates Darwin's theory of evolution by natural selection with Mendelian genetics, providing a cohesive understanding of how evolutionary processes work.

Genetics

The study of genes, genetic variation, and heredity in living organisms, explaining how traits are passed from parents to offspring.