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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 $612,000 payroll for 7,800 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $612,000 payroll for 7,800 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 | $ | 1,289,450 | # of setups | 270 | setups | ||
Materials handling | 113,400 | # of barrels | 9,450 | barrels | |||
Quality control | 1,014,000 | # of inspections | 2,600 | inspections | |||
Other overhead cost | 819,000 | # of machine hours | 19,500 | machine hours | |||
Total overhead | $ | 3,235,850 | |||||
A current product order has the following requirements:
Machine setups | 24 | setups |
Materials handling | 696 | barrels |
Quality inspections | 88 | inspections |
Machine hours | 1,500 | machine hours |
Direct labor hour | 516 | hours |
Using ABC, how much quality control overhead is assigned to the order?
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