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Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for

Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Activity Cost Pools Estimated Overhead Estimated Use of Cost Drivers per Activity Ordering and receiving $97,431 14,100 orders Food processing 518,700 65,000 machine hours Packaging 1,861,860 434,000 labor hours

For 2020, the company had 11,100 orders and used 48,000 machine hours, and labor hours totaled 499,000.

B. What is the total overhead applied?

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