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 $ 100000 500 orders Machine Setup Setups 279000 450 setups Machining Machine hours 1450000 125000 MH Assembly Parts 1160000 1000000 parts Inspection Inspections 280000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $6538 per order. $1 per direct labor hour. $0 per part. $200 per order.
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