Version 3 23. Property taxes on a manufacturing plant are an element of a A) B) C) D) No No Yes Yes No es No Yes 24. Clemson Co. incurs $700,000 of overhead costs each year in its three main departments, machining ($400,000), inspections ($200,000) and packing ($100,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Clemson's two products is as follows: Product 1,000 100 350 1,700 Product Y 3,000 500 650 1,800 Machining hours Orders packed Direct labor hours Using ABC, how much overhead is assigned to Product X this year? A) $168,334 B) $242,308 C) $350,000 D) $340,000 25. Sanborn 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 S 120,000 297,000 Cost Driver Activity 500 orders 450 setups 125,000 MH Machine Setup Machining Setups Machine 1,500,.000 Assembly Inspection Parts 1,200,000 1,000,000 parts 500 inspections Inspections300,000 If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is A) $6,834 per order B) $240 per order. C) $0.12 per part D) $1.20 per direct labor hour