Tron Company manufactures electric ovens which use two overhead activities, with the following expected costs and activity driver quantity information: Setting up equipment. Machining Direct materials Direct labour Tron Company received an order from a customer that has the following production requirements: Set-up hours Machine hours $4,000 $32,000 $28,360 $24,000 $4,360 $13,400 $10,600 80 set-up hours 800 machine hours 12 94 Calculate the total cost for this order using activity-based costing.

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…