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Nina Inc. has identified the activities that drive their overhead costs and has assigned costs as follows: Activities, Costs and Drivers Activity Overhead Cost Driver
Nina Inc. has identified the activities that drive their overhead costs and has assigned costs as follows:
Activity | Overhead Cost | Driver | Driver Quantity |
---|---|---|---|
Changeover | $500,000 | Number of Batches | 800 |
Machining | $279,000 | Machine Hours | 6,000 |
Welding | $180,300 | Welding Hours | 3,000 |
Providing space | $32,000 | Number of Units | 5,000 |
Nina makes two products, Model 5150 and Model 1492. Below are the number of drivers expected to be used to make each product in the current period.
Activity Driver | Model 5150 | Model 1492 |
---|---|---|
Units | 2,000 | 3,000 |
Batches | 300 | 500 |
Machine Hours | 3,500 | 2,500 |
Welding Hours | 1,000 | 2,000 |
How much overhead will Nina apply to Model 5150 related to changeovers?
Group of answer choices
187,500
312,500
1,250,000
116,250
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