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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 $540,000 payroll for 6,600 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $540,000 payroll for 6,600 direct labor-hours. Listed below is cost driver information used in the product-costing system LO 3 points Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead $ 210,000 109,800 660,000 495,000 $1,474,800 Cost Driver # of setups # of barrels # of inspections # of machine hours Estimated Cost Driver Level 210 setups 9,150 barrels 2,000 inspections 16,500 machine hours X 01-08-06 A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 18 setups 660 barrels 85 inspections 1,200 machine hours 444 hours Using ABC, how much total overhead is assigned to the order Multiple Choice 544.640 $45,168 o $43.050 $89,970 O $46,893
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