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Figure 11-5
Granite, SA The Following Are Two of the Jobs Completed During the and Cost

question 29

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Figure 11-5
Granite, SA., has identified the following overhead costs and cost drivers for next year:  Overhead Item  Expected Cost  Cost Driver  Expected Quantity  Setup costs £100,000 Number of setups 500 Ordering costs 40,000 Number of orders 3,200 Maintenance 200,000 Machine hours 4,000 Power 20,000 Kilowatt hours 80,000\begin{array} { l l l l } \text { Overhead Item } & \text { Expected Cost } & \text { Cost Driver } & \text { Expected Quantity } \\\text { Setup costs } & £ 100,000 & \text { Number of setups } & 500 \\\text { Ordering costs } & 40,000 & \text { Number of orders } & 3,200 \\\text { Maintenance } & 200,000 & \text { Machine hours } & 4,000 \\\text { Power } & 20,000 & \text { Kilowatt hours } & 80,000\end{array} The following are two of the jobs completed during the year:  Job 500 Job 501 Direct materials £1,500£2,000 Direct labour £1,400£2,400 Units completed 100160 Direct labour hours 100160 Number of setups 28 Number of orders 810 Machine hours 4050 Kilowatt hours 60100\begin{array}{lll}&\underline{\text { Job } 500}&\underline{\text { Job } 501}\\\text { Direct materials } & £ 1,500 & £ 2,000 \\\text { Direct labour } & £ 1,400 & £ 2,400 \\\text { Units completed } & 100 & 160 \\\text { Direct labour hours } & 100 & 160 \\\text { Number of setups } & 2 & 8 \\\text { Number of orders } & 8 & 10 \\\text { Machine hours } & 40 & 50 \\\text { Kilowatt hours } & 60 & 100\end{array} The company's normal activity is 4,000 direct labour hours.
-Refer to Figure 11-5. If Granite, SA., used activity-based cost drivers to allocate overhead costs, the unit cost for Job 500 would be

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