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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 $576,000 payroll for 7,200 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $576,000 payroll for 7,200 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 | $ | 240,000 | # of setups | 240 | setups | ||
Materials handling | 111,600 | # of barrels | 9,300 | barrels | |||
Quality control | 828,000 | # of inspections | 2,300 | inspections | |||
Other overhead cost | 648,000 | # of machine hours | 18,000 | machine hours | |||
Total overhead | $ | 1,827,600 | |||||
A current product order has the following requirements:
Machine setups | 21 | setups |
Materials handling | 678 | barrels |
Quality inspections | 86 | inspections |
Machine hours | 1,350 | machine hours |
Direct labor hour | 480 | hours |
Using ABC, how much total overhead is assigned to the order?
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