Tierny Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product:

Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity

Ordering and Receiving Orders $ 120,000 500 orders

Machine Setup Setups 297,000 450 setups

Machining Machine hours 1,500,000 125,000 MH

Assembly Parts 1,200,000 1,000,000 parts

Inspection Inspections 300,000 500 inspections

If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is

Group of answer choices

$9.60.

$34.17.

$12.00.

$15.00.

and

24. Kasey Co. computed an activity-based overhead rate for machining costs ($500,000) of $5 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the activity-based overhead rate for machining costs would be $10 per direct labor hour. The company produces two products, Rip and Roar. Rip requires 60,000 machine hours and 20,000 direct labor hours, while Roar requires 40,000 machine hours and 30,000 direct labor hours. Using activity-based costing, the machining overhead cost assigned to each product is

Group of answer choices

Rip $200,000; Roar $300,000.

Rip $750,000; Roar $250,000.

Rip $300,000; Roar $200,000.

Rip $266,667; Roar $233,333.

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