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 $576,000 payroll for 6,800 direct
Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $576,000 payroll for 6,800 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead Cost Driver $ 1,008,500 Number of setups 111,600 Number of barrels 828,000 Number of inspections 648,000 Number of machine hours $ 2,596,100 Estimated Cost Driver Level 240 setups 9,300 barrels 2,300 inspections 18,000 machine hours A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 21 setups 678 barrels 86 inspections 1,350 machine hours 480 hours What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours? (Round your intermediate calculation to 2 decimal places.) Multiple Choice O $9.910. O O $40,659. O $79,434 O $183,254 O $515,403
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