Business, 11.02.2021 20:50, ellathornburg

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 Budgeted Overhead Cost Driver Estimated Cost Driver Level
Machine setups $120,000 # of setups 120 setups
Materials handling 104,400 # of barrels 8,700 barrels
Quality control 264,000 # of inspections 1,100 inspections
Other overhead cost 144,000 # of machine hours 12,000 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 other overhead is assigned to the order?

a. $9,960.
b. $8,000.
c. $11,108.
d. $45,992.
e. $19,200.

Answers: 2

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Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The b...