Question
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 | $ 135000 | 500 orders | |
| Machine Setup | Setups | 310500 | 450 setups | |
| Machining | Machine hours | 1550000 | 125000 MH | |
| Assembly | Parts | 1230000 | 1000000 parts | |
| Inspection | Inspections | 315000 | 500 inspections |
If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is
$7081 per order.
$0.14 per part.
$1.35 per direct labor hour.
$270 per order.
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Financial Accounting
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield
10th Edition
073036321X, 978-0730363217
