Question
12. Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5,800
12. Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool | Budgeted Overhead | Cost Driver | Estimated Cost Driver Level | ||||
Machine setups | $ | 464,950 | # of setups | 170 | setups | ||
Materials handling | 107,400 | # of barrels | 8,950 | barrels | |||
Quality control | 464,000 | # of inspections | 1,600 | inspections | |||
Other overhead cost | 319,000 | # of machine hours | 14,500 | machine hours | |||
Total overhead | $ | 1,355,350 | |||||
A current product order has the following requirements:
Machine setups | 14 | setups |
Materials handling | 636 | barrels |
Quality inspections | 83 | inspections |
Machine hours | 1,000 | machine hours |
Direct labor hour | 396 | hours |
What is the total manufacturing overhead for the current product order if the firm assigns overhead costs based on machine hours? (Round your intermediate calculation to 2 decimal places.)
Multiple Choice
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$10,210.
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$36,080.
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$93,470.
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$52,790.
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$141,750.
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