Question 1 Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Cost Driver Activity Ordering and receiving orders S35000 scoorde Machine Setup 255500450 Setups Machining Machine hours 1412500 125000 MM 1130000000 265000 Soo inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is 58.81 $31.58 514.13 $11.30 Setups NOG 200000 2000 Question 2 A company incurs $3780000 of overhead each year in three departments: Processing, Packaging, and Testing The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of Oil and 600000 drums of Sludge. The following data are available: Department Expected Use of Driver Cost Prossing 151620000 Packaging 1500000 Testing 600000 Production information for the two products is as follows: Sludge (Department Expected Use of Driver Expected Use of Driver Processing 300 500 Packaging 120000 80000 Testing The amount of overhead assigned to Oil using ABC is DIS1256500 1640000 D51890000 202350 Question 3 Waterway Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: Standard Division S400000 S00000 51000000 Sales Variable costs Contribution man Total xed costs Premium Division $600000 420000 $180000 _$100000 5300000