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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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.
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