If the company uses activity-based costing and the total overhead charged to the order was $7,182, how many machine hours were used to complete the order? Select one: a. 98 b. 479 x c. 118 Od. 109

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers:
Budgeted
Overhead
$14,300
11 setups
$12,480
780 barrels
$31,620 # of inspections
102 inspections
$17,250 # of machine hours 1,150 machine hours
Overhead Cost Pool
Machine setup
Materials handling
Quality control
Machine utilities/ maintenance
Select one:
a. 98
b. 479 x
Cost Driver
c. 118
d. 109
# of setups
# of barrels
An order of 80 finished barrels of cooking oil used:
Machine setups
1 setup
Materials handling
82 barrels
Quality inspections 10 inspections
Machine hours ??? machine hours
If the company uses activity-based costing and the total overhead charged to the order was $7,182, how many machine hours were used to complete the order?
Estimated Cost
Driver Level
Transcribed Image Text:The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers: Budgeted Overhead $14,300 11 setups $12,480 780 barrels $31,620 # of inspections 102 inspections $17,250 # of machine hours 1,150 machine hours Overhead Cost Pool Machine setup Materials handling Quality control Machine utilities/ maintenance Select one: a. 98 b. 479 x Cost Driver c. 118 d. 109 # of setups # of barrels An order of 80 finished barrels of cooking oil used: Machine setups 1 setup Materials handling 82 barrels Quality inspections 10 inspections Machine hours ??? machine hours If the company uses activity-based costing and the total overhead charged to the order was $7,182, how many machine hours were used to complete the order? Estimated Cost Driver Level
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