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Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year Expected Cost Overhead Item Setup costs Ordering costs Maintenance
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year Expected Cost Overhead Item Setup costs Ordering costs Maintenance Cost Driver $50,000 Number of setups 30,000 Number of orders 100,000 Machine hours 20,000 Kilowatt hours Expected Quantity 250 1,500 2,000 4,000 Total Overhead Total direct labor hours budgeted 2,000 hours The following actual data applies to one of the products completed during the year $200,000 Product X $5,000 Number of setups $3,000 INumber of orders 100 Machine hours 100 Kilowatt hours Direct materials Direct labor 50 out Direct labor hours 500 If Orange, Inc. uses machine hours to allocate overhead cost, the unit product cost of Product X will be: O $60.00. O $8000 O $90.00 O $110.00. O $130.00
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