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:
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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Direct materials
Direct labor
Units completed
Direct labor hours
Total direct labor hours budgeted = 6,000 hours.
The following data applies to Product X, one of the products completed during the year.
Number of setups
Number of orders
Machine hours
Kilowatt hours
Budgeted Cost
$ 120,000
60,000
150,000
30,000
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:
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