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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:
Overhead Cost Pool | Budgeted Overhead | Cost Driver | Estimated Cost Driver Level | ||||
Machine setups | $ | 756,350 | # of setups | 210 | setups | ||
Materials handling | 109,800 | # of barrels | 9,150 | barrels | |||
Quality control | 660,000 | # of inspections | 2,000 | inspections | |||
Other overhead cost | 495,000 | # of machine hours | 16,500 | machine hours | |||
Total overhead | $ | 2,021,150 | |||||
A current product order has the following requirements:
Machine setups | 18 | setups |
Materials handling | 660 | barrels |
Quality inspections | 85 | inspections |
Machine hours | 1,200 | machine hours |
Direct labor hour | 444 | hours |
Using ABC, how much other overhead is assigned to the order?
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