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Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct
Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 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 $ 120,000 Number of setups 104,400 Number of barrels 264,000 Number of inspections 144,000 Number of machine hours $ 632,400 Estimated Cost Driver Level 120 setups 8,700 barrels 1,100 inspections 12,000 machine hours A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 8 setups 606 barrels 80 inspections 830 machine hours 336 hours Using activity-based costing, how much material handling overhead is assigned to the order
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