Sheffield Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders 00 Setups Machine hours Parts Inspections $250 per order. $0.13 per part. $6732 per order. O $1.25 per direct labor hour. Est. Overhead $ 125000 262500 1373500 1260000 345000 Cost Driver Activity 500 orders 450 setups 125000 MH 1000000 parts If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is 500 inspections SUPP

Sheffield Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product: If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $250 per order. so.13 perpart. $6732 per order. $1.25 per direct labor hour