Question
Question 2 Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost
Question 2
Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:
Overhead Costs Pool | Cost Driver | Overhead Cost Budgeted Level for Cost Driver | Budgeted | |||||
Quality control | # of inspections | $ | 64,800 | 800 | ||||
Machine time | Machine hours | 182,325 | 663 | |||||
Materials handling | # of Batches | 5,850 | 90 | |||||
Miscellaneous overhead cost | Direct labor hours | 62,000 | 5,800 | |||||
Diamond Cleats Co. has an order for cleats that has the following production requirements:
Number of inspections | 495 | |
Number of machine hours | 300 | |
Number of batches | 7 | |
Direct labor hours | 1,200 | |
Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:
Multiple Choice
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$29,250.
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$31,020.
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$40,095.
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$21,950.
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$20,400.
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $540,000 payroll for 6,200 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool | Budgeted Overhead | Cost Driver | Estimated Cost Driver Level | ||||
Machine setups | $ | 756,350 | # of setups | 210 | setups | ||
Materials handling | 109,800 | # of barrels | 9,150 | barrels | |||
Quality control | 660,000 | # of inspections | 2,000 | inspections | |||
Other overhead cost | 495,000 | # of machine hours | 16,500 | machine hours | |||
Total overhead | $ | 2,021,150 | |||||
A current product order has the following requirements:
Machine setups | 18 | setups |
Materials handling | 660 | barrels |
Quality inspections | 85 | inspections |
Machine hours | 1,200 | machine hours |
Direct labor hour | 444 | hours |
What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours? (Round your intermediate calculation to 2 decimal places.)
Multiple Choice
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$10,410.
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$38,671.
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$67,524.
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$144,740.
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$391,188.
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