Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 85000 500 orders Machine Setup Setups 265500 450 setups Machining Machine hours 1412500 125000 MH Assembly Parts 1130000 1000000 parts Inspection Inspections 265000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $ 0.09 per part. $ 170 per order. $ 6316 per order. $ 0.85 per direct labor hour.
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 85000 500 orders Machine Setup Setups 265500 450 setups Machining Machine hours 1412500 125000 MH Assembly Parts 1130000 1000000 parts Inspection Inspections 265000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $ 0.09 per part. $ 170 per order. $ 6316 per order. $ 0.85 per direct labor hour.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Tidwell Industries has the following
Activity Cost Pool | Cost Driver | Est. Overhead | Cost Driver Activity | |
Ordering and Receiving | Orders | $ 85000 | 500 orders | |
Machine Setup | Setups | 265500 | 450 setups | |
Machining | Machine hours | 1412500 | 125000 MH | |
Assembly | Parts | 1130000 | 1000000 parts | |
Inspection | Inspections | 265000 | 500 inspections |
If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is
$ 0.09 per part.
$ 170 per order.
$ 6316 per order.
$ 0.85 per direct labor hour.
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