Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5,800 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 Number of setups Estimated Cost Driver Level 170 setups 8,950 barrels $ 464,950 107,400 Number of barrels 464,000 319,000 Number of inspections Number of machine hours 1,600 inspections 14,500 machine hours $ 1,355,350 A current product order has the following requirements: Machine setups Materials handling Quality inspections. Machine hours Direct labor hour 14 setups 636 barrels 83 inspections 1,000 machine hours 396 hours What is the total manufacturing overhead for the current product order if the firm assigns overhead costs based on machine hours? (Round your intermediate calculation to 2 decimal places.) Multiple Choice $10,210. $36,080. $93 470

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
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Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5,800 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
Number of setups
Estimated Cost Driver Level
170 setups
8,950 barrels
$ 464,950
107,400
Number of barrels
464,000
319,000
Number of inspections
Number of machine hours
1,600 inspections
14,500 machine hours
$ 1,355,350
A current product order has the following requirements:
Machine setups
Materials handling
Quality inspections.
Machine hours
Direct labor hour
14 setups
636 barrels
83 inspections
1,000 machine hours
396 hours
What is the total manufacturing overhead for the current product order if the firm assigns overhead costs based on machine hours? (Round your intermediate calculation to 2 decimal places.)
Multiple Choice
$10,210.
$36,080.
$93 470
Transcribed Image Text:Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5,800 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 Number of setups Estimated Cost Driver Level 170 setups 8,950 barrels $ 464,950 107,400 Number of barrels 464,000 319,000 Number of inspections Number of machine hours 1,600 inspections 14,500 machine hours $ 1,355,350 A current product order has the following requirements: Machine setups Materials handling Quality inspections. Machine hours Direct labor hour 14 setups 636 barrels 83 inspections 1,000 machine hours 396 hours What is the total manufacturing overhead for the current product order if the firm assigns overhead costs based on machine hours? (Round your intermediate calculation to 2 decimal places.) Multiple Choice $10,210. $36,080. $93 470
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