Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pool -- Budgeted Cost - Cost Driver - Cost Driver Lvl
Setup - 40,000 - Number of setups - 200
Ordering - 20,000 - Number of orders - 1,000
Maintenance - 50,000 - Machine Hours - 5,000
Power- 10,000 - Kilowatt Hours - 10,000

Total direct labor hours budgeted = 2,000 hours.

The following data applies to Product X, one of the products completed during the year

Direct Materials - 1,000
Direct Labor - 1,200
Unites completed - 100
Direct labor hours - 40
Number of setups - 4
Number of orders - 8
Machine Hours - 50
Kilowatt hours - 100

If a volume-based costing system based on direct labor hours to assign overhead is used, the total overhead cost for Product X will be:

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business. identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats. implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the