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Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead Cost Driver $120,000 # of setups Estimated Cost Driver Level 120 setups 104,400 # of barrels 264,000 # of inspections 144,000 # of machine hours $632,400 8,700 barrels 1,100 inspections 12,000 machine hours A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 8 setups 606 barrels 80 inspections 830 machine hours 336 hours Using ABC, how much quality control overhead is assigned to the order? Multiple Choice $9,960. C $8,000. $11,108. O $45,933. $19,200
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