| Activity | Activity Rate | Activity Value | Activity Cost |
| Purchasing | $380 per order | 3 | 1,140 |
| Storing | $2 per square foot/days | 4,000 | 8,000 |
| Machining | $100 per machine hour | 60 | 6,000 |
| Supervision | $5 per direct labor hour | 40 | 200 |
| Total | $15,340 |
| Calculation of Total Cost | |
| Direct materials | 19,000 |
| Direct labor (40 x 30) | 1,200 |
| Overhead cost | 15,340 |
| Total Cost | $35,540 |
The total cost of the snow man project = $35,540
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American Delights manufactures a wide variety of holiday and seasonal decorative items. American's activity-based costing overhead...
Question 4 American Delights manufactures a wide variety of holiday and seasonal decorative items. American's activity-based costing overhead rates are: Purchasing Storing Machining Supervision $380 per order $2 per square foot/days $100 per machine hour $5 per direct labor hour The Snow Man project involved three purchase orders, 4,000 square feet/days, 60 machine hours, and 40 direct labor hours. The cost of direct materials on the job was $19,000 and the direct labor rate is $30 per hour. Determine the...
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