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Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 140,000 500 orders Machine Setup Setups 306,000 450 setups Machining Machine hours 1,625,000 125,000 MH Assembly Inspection Parts Inspections 1,250,000 250,000 1,000,000 parts 500 inspections If overhead is applied using activity-based costing, the overhead application rate for Machining is $0.00357 per part. $35.71 per direct labor hour. $13.00 per machine hour. $240 per order. $268.57 per machine hour
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