Question
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Budgeted Cost Cost Driver Cost Driver Level
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Budgeted Cost Cost Driver Cost Driver Level Setup $ 110,000 Number of setups 550 Ordering 55,000 Number of orders 2,750 Maintenance 137,500 Machine hours 13,750 Power 27,500 Kilowatt hours 27,500 Total direct labor hours budgeted = 5,500 hours. The following data applies to Product X, one of the products completed during the year. Direct materials $ 2,750 Direct labor $ 3,300 Units completed 275 Direct labor hours 110 Number of setups 11 Number of orders 22 Machine hours 110 Kilowatt hours 275
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