Question
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 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 $ 120,000 # of setups 120 setups Materials handling 104,400 # of barrels 8,700 barrels Quality control 264,000 # of inspections 1,100 inspections Other overhead cost 144,000 # of machine hours 12,000 machine hours Total overhead $ 632,400 A current product order has the following requirements: Machine setups 8 setups Materials handling 606 barrels Quality inspections 80 inspections Machine hours 830 machine hours Direct labor hour 336 hours
What is the total manufacturing overhead for the current product order if the firm assigns overhead costs based on machine hours?
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