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14. Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost Budgeted
14. Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:
Overhead Costs Pool | Cost Driver | Overhead Cost Budgeted Level for Cost Driver | Budgeted | |||||
Quality control | # of inspections | $ | 71,200 | 800 | ||||
Machine time | Machine hours | 285,265 | 967 | |||||
Materials handling | # of Batches | 9,350 | 110 | |||||
Miscellaneous overhead cost | Direct labor hours | 62,000 | 7,400 | |||||
Diamond Cleats Co. has an order for cleats that has the following production requirements:
Number of inspections | 555 | |
Number of machine hours | 340 | |
Number of batches | 9 | |
Direct labor hours | 1,360 | |
Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:
Multiple Choice
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$28,350.
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$30,120.
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$49,395.
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$21,050.
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$19,500.
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