Question
Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost Budgeted Level for Cost Driver
Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost Budgeted Level for Cost Driver Quality control Number of inspections $64,800 1,080 Machine operation Machine hours 132,000 1,100 Materials handling Number of batches 900 30 Miscellaneous overhead cost Direct labor hours 48,000 4,000 Sheen Co. has an order for 1,000 laser printers that has the following production requirements: Number of inspections 175 Machine hours 180 Number of batches 5 Direct labor hours 650 Using activity-based costing, miscellaneous factory overhead applied to the 1,000 laser printers order based on direct labor hours is:
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