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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 $444,000 payroll for 5,000 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $444,000 payroll for 5,000 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 $ 171,250 105,000 300,000 175,000 $ 751, 250 Cost Driver # of setups # of barrels # of inspections # of machine hours Estimated Cost Driver Level 125 setups 8,750 barrels 1,200 inspections 12,500 machine hours A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 10 setups 612 barrels 81 inspections 800 machine hours 348 hours Using ABC, how much machine setup overhead is assigned to the order? Multiple Choice $13,700. $10,010. $19,300. $7,372 $11.208
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