Q1.What is Sanford's total estimated overhead cost?

Q2.What is the budgeted rate per production hour?

Q3.What is the budgeted rate per machine hour?

Q4.What is the budgeted rate per engineering change order?

Q5.What would be the total cost of producing Sanford's most popular lawnmower?

Sanford Lawn Care Sanford Lawn Care is a company which produces high quality lawnmowers. Sanford has recently implemented an Activity Based costing system. After researching, they have determined that their three main activity centres are production setup, machine operation and maintenance, and engineering. Sanford's estimated annual costs are as follows: Production setup: $200,000- Machine operation and maintenance: $1,200,000+ Engineering: $175,000 Their estimated cost driver activity is as follows:+ Avg. yearly production runs: 10,000- Avg. yearly machine hours: 45,000- Avg. yearly engineering change orders: 18,000 Sanford's most popular lawnmower requires the following for production: Direct materials $75 Direct labour $115 Production run 2- Machine hours - 6+ Engineering change orders 1