Question
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 | Budgeted overhead | Cost driver | Estimated cost driver level |
Machine setups | $120,000 | number of setups | 120 setups |
Materials handling | $104,400 | number of barrels | 8,700 barrels |
Quality control | $264,000 | number of inspections | 1,100 inspections |
Other overhead cost | $144,000 | number of machine hours | 12,000 machine hours |
Total overhead | $632,400 |
|
|
A current product order has the following requirements:
Machine setups | 8 setups |
Materials handling | 606 barrels |
Quality inspections | 80 inspections |
Machine hours | 830 machine hours |
Direct labor hour | 336 direct labor hours |
Using ABC, how much quality control overhead is assigned to the order?
$9,960. | ||
$19,200. | ||
$11,108. | ||
$8,000. | ||
$45,933. |
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