Bally Incorporated has identified the following cost drivers for its expected overhead costs for the year: Cost Driver Level 600 3,000 15,000 30,000 Cost Pools Setup Ordering Maintenance Power Total direct labor hours budgeted = 6,000 hours. Budgeted Cost $ 120,000 60,000 150,000 30,000 Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Kilowatt hours The following data applies to Product X, one of the products completed during the year. Cost Driver Number of setups Number of orders Machine hours Kilowatt hours Multiple Choice $3,000 $3,600 300 120 12 24 150 300 If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyz…