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Coronado Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available
Coronado Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity 500 orders Ordering and Receiving Orders $ 60000 Machine Setup Setups 294500 450 setups Machining Machine hours 1625500 125000 MH Assembly Parts 1200000 1000000 parts Inspection Inspections 260000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is O $0.60 per direct labor hour. O $0.06 per part $6880 per order. $120 per order
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