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 145000 500 orders Machine Setup Setup 319500 450 setups Machining Machine hours 1575000 125000 MH Assembly Parts 1250000 1000000 parts Inspection Inspections 325000 500 inspections   If overhead is applied using activity-based-costing, the overhead application rate for ordering and receiving is?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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

145000

500 orders

Machine Setup

Setup

319500

450 setups

Machining

Machine hours

1575000

125000 MH

Assembly

Parts

1250000

1000000 parts

Inspection

Inspections

325000

500 inspections

 

If overhead is applied using activity-based-costing, the overhead application rate for ordering and receiving is?

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