Print Company manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs PoolCost DriverOverhead CostBudgeted Level for Cost DriverQuality controlNumber of inspections$ 77,0001,100Machine operationMachine hours153,0001,500Materials handlingNumber of batches1,20030Miscellaneous overhead costDirect labor hours57,0005,700 Print Company has an order for 1,000 laser printers that has the following production requirements: Number of inspections295Machine hours240Number of batches6Direct labor hours770 Using activity-based costing, applied quality control factory overhead for the 1,000 laser printers order is: Multiple Choice $7,700. $20,120. $20,650. $240. $24,480.

Activity-based costing is the method of assigning the overhead and the indirect costs to the…

Answered: Using activity-based costing, applied…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Print Company manufacturers laser printers. It has outlined the following overhead cost drivers:

Overhead Costs Pool	Cost Driver	Overhead Cost	Budgeted Level for Cost Driver
Quality control	Number of inspections	$ 77,000	1,100
Machine operation	Machine hours	153,000	1,500
Materials handling	Number of batches	1,200	30
Miscellaneous overhead cost	Direct labor hours	57,000	5,700

Print Company has an order for 1,000 laser printers that has the following production requirements:

Number of inspections	295
Machine hours	240
Number of batches	6
Direct labor hours	770

Using activity-based costing, applied quality control factory overhead for the 1,000 laser printers order is:

Multiple Choice

$7,700.
$20,120.
$20,650.
$240.
$24,480.

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