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Lily Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 1 0 0 0 0 0 for the year.
Lily Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product:
tableActivity Cost Pool,Cost Driver,Est. Overhead,Cost Driver ActivityOrdering and Receiving,Orders,$ ordersMachine Setup,Setups, setupsMachiningMachine hours,AssemblyParts, partsInspectionInspections, inspections
If overhead is applied using activitybased costing, the overhead application rate for ordering and receiving is
$ per direct labor hour.
$ per order.
$ per part.
$ per order.
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