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: Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead Cost Driver Estimated Cost Driver Level 120 setups $120,000 # of setups 104,400 # of barrels 264,000 # of inspections 144,000 # of machine hours $632,400 8,700 barrels 1,100 inspections 12,000 machine hours A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 8 setups 606 barrels 80 inspections 830 machine hours 336 hours Using ABC, how much machine setup overhead is assigned to the order? Multiple Choice О $8,000. о $11,108. $7,272. $9,960. $19,200.
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: Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead Cost Driver Estimated Cost Driver Level 120 setups $120,000 # of setups 104,400 # of barrels 264,000 # of inspections 144,000 # of machine hours $632,400 8,700 barrels 1,100 inspections 12,000 machine hours A current product order has the following requirements: Machine setups Materials handling Quality inspections Machine hours Direct labor hour 8 setups 606 barrels 80 inspections 830 machine hours 336 hours Using ABC, how much machine setup overhead is assigned to the order? Multiple Choice О $8,000. о $11,108. $7,272. $9,960. $19,200.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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