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Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items Power Maintenance cost Ordering cost Set ups

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Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items Power Maintenance cost Ordering cost Set ups cost E (cost) $ 15000 7800 6150 4500 E(activity) Number of setups 400 Number of orders 4,000 Machine Hours 5,000 Kilowatt hours 52000 Cost Driver The following is one of the jobs completed during the year Product A Product B Direct materials $1200 $1300 Hourly rate 25 30 Units completed 125 150 DLH 140 70 Number of setups 4 6 Number of orders 20 9 Machine hours 250 100 Kilowatt hours 75 48 Actual overhead $1500 $950 The company's practical activity is 9800 machine hours

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