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TB MC Qu. 5-106 (Algo) Using activity-based costing, how much other overhead is assigned: Power Company Power Company manufactures a variety of drill bits. The
TB MC Qu. 5-106 (Algo) Using activity-based costing, how much other overhead is assigned: Power Company
Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $624,000 payroll for 8,000 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 | $ 1,389,500 | Number of setups | 280 | setups |
Materials handling | 114,000 | Number of barrels | 9,500 | barrels |
Quality control | 1,080,000 | Number of inspections | 2,700 | inspections |
Other overhead cost | 880,000 | Number of machine hours | 20,000 | machine hours |
Total overhead | $ 3,463,500 |
A current product order has the following requirements:
Machine setups | 25 | setups |
---|---|---|
Materials handling | 702 | barrels |
Quality inspections | 88 | inspections |
Machine hours | 1,800 | machine hours |
Direct labor hour | 528 | hours |
Using activity-based costing, how much other overhead is assigned to the order?
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