Note that data typically Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Materials Ordering 140 orders Use of Cost Driver by Compact 35 setups 45 orders Cost Pool Cost Driver and Estimated Level of Activity Estimated Overhead Cost Use of Cost Driver by Deluxe Equipment Setup 100 setups $60,000 65 setups $63,000 95 orders Quality Control Mixing 200 inspections $66,000 150 inspections 9,000 machine hours $54,000 5,000 machine hours 4,000 machine hours Total Overhead Cost $243,000 50 inspections What is the total overhead cost applied to Compact when all overhead is applied based on machine hours?
Note that data typically Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the Compact model. Additional data is as follows: Materials Ordering 140 orders Use of Cost Driver by Compact 35 setups 45 orders Cost Pool Cost Driver and Estimated Level of Activity Estimated Overhead Cost Use of Cost Driver by Deluxe Equipment Setup 100 setups $60,000 65 setups $63,000 95 orders Quality Control Mixing 200 inspections $66,000 150 inspections 9,000 machine hours $54,000 5,000 machine hours 4,000 machine hours Total Overhead Cost $243,000 50 inspections What is the total overhead cost applied to Compact when all overhead is applied based on machine hours?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Note that data typically
Flashlight, Inc. makes two types of flashlights and is implementing an activity-based costing system. Previously, all overhead had
been applied on the basis of machine hours. The company produces 11,250 units of the Deluxe model and 21,142 units of the
Compact model. Additional data is as follows:
Materials Ordering 140 orders
Use of Cost Driver by
Compact
35 setups
45 orders
Cost Pool
Cost Driver and Estimated
Level of Activity
Estimated
Overhead Cost
Use of Cost Driver by
Deluxe
Equipment Setup
100 setups
$60,000
65 setups
$63,000
95 orders
Quality Control
Mixing
200 inspections
$66,000
150 inspections
9,000 machine hours
$54,000
5,000 machine hours
4,000 machine hours
Total Overhead Cost
$243,000
50 inspections
What is the total overhead cost applied to Compact when all overhead is applied based on machine hours?
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