Question
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $636,000 payroll for 8,200 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $636,000 payroll for 8,200 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 $ 290,000 # of setups 290 setups Materials handling 114,600 # of barrels 9,550 barrels Quality control 1,148,000 # of inspections 2,800 inspections Other overhead cost 943,000 # of machine hours 20,500 machine hours Total overhead $ 2,495,600 A current product order has the following requirements: Machine setups 26 setups Materials handling 708 barrels Quality inspections 89 inspections Machine hours 1,600 machine hours Direct labor hour 540 hours Using ABC, how much total overhead is assigned to the order?
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