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Honeywell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver
Honeywell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Ordering and Receiving Orders Machine Setup Setups Machining Machine hours Estimated Overhead Cost Driver Activity $21,700 500 orders $31,300 450 setups $44,500 125,000 hours $47,600 1,000,000 parts $35,200 500 inspections Assembly Parts Inspection Inspections Overhead is applied using traditional costing based on direct labor hours. What is the overhead application rate? $0.45 $1.80 $0.22 $1.27
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