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Orange, Inc. has identified the following cost drivers for its expected overhead costs for the Cost Pools Setup Ordering Maintenance Power Budgeted Cost $70,000 35,000

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Orange, Inc. has identified the following cost drivers for its expected overhead costs for the Cost Pools Setup Ordering Maintenance Power Budgeted Cost $70,000 35,000 87,500 17,500 Cost Driver Number of setups Number of orders Machine hours Kilowatt hours Cost Driver Level 350 1,750 8,750 17,500 Total direct labor hours budgeted = 3,500 hours. The following data applies to Product X, one of the products completed during the year. Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Kilowatt hours $1,750 $2,100 175 70 7 14 70 175 If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be: Multiple Choice 0 $2,555. $4,200. 0 $3,500 $3,555. $2,495

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