A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted) Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000.The following information was collected on three jobs that were completed during the year: The company prices its products at 140% of cost.If the company uses activity-based costing (ABC),the price of each unit of Job 103 would be
A)$98.
B)$100.
C)$116.
D)$140.

Question

A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted)  Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000.The following information was collected on three jobs that were completed during the year:  The company prices its products at 140% of cost.If the company uses activity-based costing (ABC),the price of each unit of Job 103 would be
A)$98. 
B)$100. 
C)$116. 
D)$140.

Quizplus · Accepted Answer

The Answer of A company has identified the following overhead costs and cost drivers for the coming year: (CIA adapted)  Budgeted direct labor cost was $100,000 and budgeted direct material cost was $280,000.The following information was collected on three jobs that were completed during the year:  The company prices its products at 140% of cost.If the company uses activity-based costing (ABC),the price of each unit of Job 103 would be
A)$98. 
B)$100. 
C)$116. 
D)$140.

A Company Has Identified the Following Overhead Costs and Cost