Multiple Choice $28,350. $30,120. $49,395.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Multiple Choice**

- ○ $28,350
- ○ $30,120
- ○ $49,395
- ○ $21,050
- ○ $19,500

There are no graphs or diagrams accompanying this text.
Transcribed Image Text:**Multiple Choice** - ○ $28,350 - ○ $30,120 - ○ $49,395 - ○ $21,050 - ○ $19,500 There are no graphs or diagrams accompanying this text.
### Overview of Overhead Cost Drivers for Gold Shoes Company

Gold Shoes Company specializes in manufacturing cleats for baseball shoes. The company utilizes various overhead cost drivers to manage and allocate costs effectively. The details of these overhead cost drivers are outlined in the table below:

| **Overhead Cost Pool**          | **Cost Driver**            | **Overhead Cost Budgeted** | **Level for Cost Driver** | **Budgeted** |
|---------------------------------|----------------------------|----------------------------|---------------------------|--------------|
| **Quality Control**             | Number of inspections      | $71,200                    | 800                       |              |
| **Machine Time**                | Machine hours              | $285,265                   | 967                       |              |
| **Materials Handling**          | Number of Batches          | $9,350                     | 110                       |              |
| **Miscellaneous Overhead Cost** | Direct labor hours         | $62,000                    | 7,400                     |              |

### Production Requirements for Baseball Cleats Order

Gold Shoes Company has received an order for cleats with specific production requirements as follows:

- **Number of Inspections**: 555
- **Number of Machine hours**: 340
- **Number of Batches**: 9
- **Direct Labor Hours**: 1,360

### Application of Activity-Based Costing

By employing activity-based costing, the company can determine the applied quality control factory overhead for the baseball cleat order. This involves analyzing and associating the costs based on the actual activity demands of the order. The data provided allows for precise measurement and allocation of the overhead costs involved in the production process.
Transcribed Image Text:### Overview of Overhead Cost Drivers for Gold Shoes Company Gold Shoes Company specializes in manufacturing cleats for baseball shoes. The company utilizes various overhead cost drivers to manage and allocate costs effectively. The details of these overhead cost drivers are outlined in the table below: | **Overhead Cost Pool** | **Cost Driver** | **Overhead Cost Budgeted** | **Level for Cost Driver** | **Budgeted** | |---------------------------------|----------------------------|----------------------------|---------------------------|--------------| | **Quality Control** | Number of inspections | $71,200 | 800 | | | **Machine Time** | Machine hours | $285,265 | 967 | | | **Materials Handling** | Number of Batches | $9,350 | 110 | | | **Miscellaneous Overhead Cost** | Direct labor hours | $62,000 | 7,400 | | ### Production Requirements for Baseball Cleats Order Gold Shoes Company has received an order for cleats with specific production requirements as follows: - **Number of Inspections**: 555 - **Number of Machine hours**: 340 - **Number of Batches**: 9 - **Direct Labor Hours**: 1,360 ### Application of Activity-Based Costing By employing activity-based costing, the company can determine the applied quality control factory overhead for the baseball cleat order. This involves analyzing and associating the costs based on the actual activity demands of the order. The data provided allows for precise measurement and allocation of the overhead costs involved in the production process.
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