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Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 55000 500 orders Machine Setup Setups 450 setups Machining Machine hours 1337500 125000 MH Assembly 1070000 1000000 parts Inspection Inspections 235000 500 inspections 238500 Parts If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $110 per order. $0.06 per part $5872 per order $0.55 per direct labor hour
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