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Print Company manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost Budgeted Level for Cost Driver

Print Company manufacturers laser printers. It has outlined the following overhead cost drivers:

Overhead Costs Pool Cost Driver Overhead Cost Budgeted Level for Cost Driver
Quality control Number of inspections $ 72,000 1,200
Machine operation Machine hours 150,000 1,500
Materials handling Number of batches 1,200 30
Miscellaneous overhead cost Direct labor hours 57,000 5,700

Print Company has an order for 1,000 laser printers that has the following production requirements:

Number of inspections 265
Machine hours 225
Number of batches 5
Direct labor hours 740

Using activity-based costing, applied machine operation overhead for the 1,000 laser printers order is:

Multiple Choice

$7,400.

$15,360.

$15,900.

$200.

$22,500.

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