![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used
in the product-costing system:
Budgeted
Overhead Cost Pool
Overhead
Cost Driver
Estimated Cost Driver Level
Machine setups
Materials handling
Quality control
$120,000
# of setups
120 setups
8,700 barrels
1,100 inspections
12,000 machine hours
104,400
# of barrels
264,000
# of inspections
Other overhead cost
144,000
# of machine hours
Total overhead
$632,400
A current product order has the following requirements:
Machine setups
8 setups
Materials handling
606 barrels
Quality inspections
80 inspections
Machine hours
830 machine hours
Direct labor hour
336 hours
Using ABC, how much machine setup overhead is assigned to the order?](https://content.bartleby.com/qna-images/question/24ed56f0-6bb5-4d72-8343-8e5f80d3d5a2/06523c6c-9d57-44f7-ae99-116b0088cf93/zat7p1_thumbnail.jpeg)
Transcribed Image Text:Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used
in the product-costing system:
Budgeted
Overhead Cost Pool
Overhead
Cost Driver
Estimated Cost Driver Level
Machine setups
Materials handling
Quality control
$120,000
# of setups
120 setups
8,700 barrels
1,100 inspections
12,000 machine hours
104,400
# of barrels
264,000
# of inspections
Other overhead cost
144,000
# of machine hours
Total overhead
$632,400
A current product order has the following requirements:
Machine setups
8 setups
Materials handling
606 barrels
Quality inspections
80 inspections
Machine hours
830 machine hours
Direct labor hour
336 hours
Using ABC, how much machine setup overhead is assigned to the order?
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