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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: Activities, Costs and Drivers 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 9.000 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 Usage by Product Model 5150 2,000 Model 1492 3 000 Activity Driver Units Batches Machine Hours Welding Hours 300 500 3.500 2.500 1.000 2.000 How much overhead will Nina apply to Model 5150 related to Machining? 0 279.000 116.250 O 13.950 O 162.750
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