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The KLM Company has established the following overhead cost pools and cost drivers. Estimated Level for Cost Driver 1,000 MH Overhead Cost Pool Machine
The KLM Company has established the following overhead cost pools and cost drivers. Estimated Level for Cost Driver 1,000 MH Overhead Cost Pool Machine Material Handling Quality control Packaging Facility Total Machine Material Handling Quality Control Roals S S S S $ $ Estimated Overhead Cost 200,000 Machine Hours Weight of raw material Number of inspections 50,000 Number of Units 150,000 70,000 180,000 Cost Driver 650,000 Direct Labor Hours 50,000 tons 2.000 inspections 20,000 units 30,000 DLH Pool Rates An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspection Total b. c. $ Machine Material Handling Quality Control Packaging Facility 180,000 650,000 Labor An order for 500 units of product-ordered by Alfa Co.- has the following production requirements. 80 MH 10,000 tons 20 inspections 100 units 800 DLH Hours 30,000 DIH Required: a. Compute the total overhead cost that should be assigned to the order of Alfa Co., using the five cost pools and drivers. What is the overhead cost per unit ordered by Alfa Co? Suppose KLM Company were to use a single predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to the order above.
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