Answered step by step
Verified Expert Solution
Link Copied!

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 $432,000 payroll for 4,800

  

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: Budgeted Overhead Cost Driver Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead $ 120,000 Number of setups 104,400 Number of barrels 264,000 144,000 Number of inspections Number of machine hours $ 632,400 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 other overhead is assigned to the order? Estimated Cost Driver Level 120 setups 8,700 barrels 1,100 inspections 12,000 machine hours

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Sure I can help you with this activitybased costing problem Activitybased costing ABC is a costing method that assigns overhead costs to products or services based on the activities that drive those c... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions

Question

(a) Paid $18,000 to suppliers

Answered: 1 week ago

Question

=+1. Describe at least four different sexual orientations.

Answered: 1 week ago