Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $440,640 payroll for 4,896 direct
Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $440,640 payroll for 4,896 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool | Budgeted Overhead | Cost Driver | Estimated Cost Driver Level | |
---|---|---|---|---|
Machine setups | $ 122,400 | Number of setups | 120 | setups |
Materials handling | 105,600 | Number of barrels | 8,800 | barrels |
Quality control | 288,000 | Number of inspections | 1,200 | inspections |
Other overhead cost | 145,200 | Number of machine hours | 12,100 | machine hours |
Total overhead | $ 661,200 |
A current product order has the following requirements:
Machine setups | 7 | setups |
---|---|---|
Materials handling | 610 | barrels |
Quality inspections | 84 | inspections |
Machine hours | 834 | machine hours |
Direct labor hour | 340 | hours |
Using activity-based costing, how much machine setup overhead is assigned to the order?
Multiple Choice
$18,340.
$7,140.
$10,248.
$9,100.
$6,412.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started