**Activity-Based Costing Analysis for Tamale Cooking Oil Co.**The controller for Tamale Cooking Oil Co. has established the following overhead cost pools and related cost drivers:| Overhead Cost Pool | Budgeted Overhead | Cost Driver | Estimated Cost Driver Level ||------------------------------------|-------------------|-----------------------|-----------------------------|| Machine setup | $14,300 | # of setups | 11 setups || Materials handling | $12,480 | # of barrels | 780 barrels || Quality control | $31,620 | # of inspections | 102 inspections || Machine utilities/maintenance | $17,250 | # of machine hours | 1,150 machine hours |**For an order of 80 finished barrels of cooking oil:**- **Machine setups:** 1 setup- **Materials handling:** 82 barrels- **Quality inspections:** 10 inspections- **Machine hours:** ??? machine hoursThe exercise is to determine the number of machine hours used to complete the order. Given the total overhead charged to the order is $7,182, and using activity-based costing, calculate the machine hours.**Select one:**- a. 98- b. 109- c. 118- d. 479**Explanation of Approach:**To solve, you need to distribute the overhead based on the known cost drivers first and then determine the allocation to machine hours that balances to the given overhead cost for the order.

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Description: **Activity-Based Costing Analysis for Tamale Cooking Oil Co.**The controller for Tamale Cooking Oil Co. has established the following overhead cost pools and related cost drivers:| Overhead Cost Pool | Budgeted Overhead | Cost Driver

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The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers: Budgeted Overhead Estimated Cost Driver Level $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 Cost Driver Quality control Machine utilities/ maintenance An order of 80 finished barrels of cooking oil used: Machine setups 1 setup Materials handling 82 barrels Select one: O a. 98 O O O # of setups # of 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? b. 109 c. 118 d. 479

The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers: Budgeted Overhead Estimated Cost Driver Level $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 Cost Driver Quality control Machine utilities/ maintenance An order of 80 finished barrels of cooking oil used: Machine setups 1 setup Materials handling 82 barrels Select one: O a. 98 O O O # of setups # of 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? b. 109 c. 118 d. 479

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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