Vurmour Inc. has been allocating Manufacturing Overhead (MOH…
Vurmour Inc. has been allocating Manufacturing Overhead (MOH) costs to products using a single plant-wide rate of $15.00 per Direct Labor (DL) hour. Based on the increased activity, the accountants are suggesting a transition to Activity-Based Costing (ABC) and has provided the following details regarding the budget and the requirements for a recent job (Job A). Activity Budgeted Cost Budgeted Quantity of Cost Driver JOB A Actual Usage Materials Handling $48500 5800 labor hour 362 labor hours Set-up 125600 9500 production runs 34 production runs Quality Inspections 35000 11600 inspections 17 inspections Total $209100 Assuming that Vurmour makes the switch to ABC, what are the total MOH costs allocated to JOB A?