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1. IOK company produces various types of machine spare parts to order through 4 activities: machine set up, process inspection, spare parts assembly and spare
1. IOK company produces various types of machine spare parts to order through 4 activities: machine set up, process inspection, spare parts assembly and spare parts management with a overhead cost budget of $60,000,000 $45,000,000 $90,000,000 $25,000,000 each activity. Manufacturing overhead costs are assigned to each order at a per activity rate. In 2020, the determination of overhead rates for each activity is determined by a cost driver of 500 setup times, 4,500 inspection hours, 20,000 machine hours and 250 spare parts units. The principal cost of order No. 2408 is $10,500,000. The total amount of overhead to be assigned to order of 100 units of frame No. 2408 is... A. $915,000 B. $2,200,000 C. $440,000 D. $13,500,000
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