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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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