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Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Cost Driver Number of set- Machine set-ups $240,000 200 set-ups ups Material Units
Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Cost Driver Number of set- Machine set-ups $240,000 200 set-ups ups Material Units of raw $90,000 60,000 units handling material Quality control Number of $48,000 1,200 inspections inspection inspections Other overhead 20,000 machine $160,000 Machine hours costs hours Total $538,000 Order No. 715 has the following production requirements: Machine set-ups: 7 Raw material: 11,200 units Inspections: 16 . Machine hours: 850 Required: A. Suppose that Wolfe were to use a single, predetermined overhead rate based on number of set-ups. Compute the rate per set-up and the total overhead assigned to Order No. 715. (5 points) B. Compute the total overhead that should be assigned to Order No. 715
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