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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 $ 80000 500 orders
Machine Setup Setups 261000 450 setups
Machining Machine hours 1400000 125000 MH
Assembly Parts 1120000 1000000 parts
Inspection Inspections 260000 500 inspections

If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is

A$0.80 per direct labor hour.

B$0.08 per part.

C$160 per order.

D$6242 per order.

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