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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 $564,000 payroll for 6,600 direct
Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $564,000 payroll for 6,600 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 | $ 921,250 | Number of setups | 230 | setups |
Materials handling | 111,000 | Number of barrels | 9,250 | barrels |
Quality control | 770,000 | Number of inspections | 2,200 | inspections |
Other overhead cost | 595,000 | Number of machine hours | 17,500 | machine hours |
Total overhead | $ 2,397,250 |
A current product order has the following requirements:
Machine setups | 20 | setups |
---|---|---|
Materials handling | 672 | barrels |
Quality inspections | 86 | inspections |
Machine hours | 1,300 | machine hours |
Direct labor hour | 468 | 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.)
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