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Problem 1. Activity based costing (13 points) Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the
Problem 1. Activity based costing (13 points) Everlast Co. 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 Estimated Cost Driver Overhead Cost Pool Overhead Cost Driver Level Machine setups $ 120,000 # of setups 120 setups Materials handling 104,400 # of barrels 8.700 barrels Quality control 264,000 # of inspections 1.100 inspections Other overhead cost 144,000 # of machine hours 12.000 machine hours Total overhead $ 632,400 A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 8 606 80 830 336 setups barrels inspections machine hours hours Required: Compute the unit manufacturing cost and the total maanufacturing costs of the order. Show calculations
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