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everlast co. manufactures a variety of dri...
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Business, 16.09.2019 20:00 yorbal6109
This problem has been solved!
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everlast co. manufactures a variety of drill bits. the company's plant is partially automated. the budget for the year includes $432,000 payroll for 4,800 direct labor-hours. listed below is cost driver information used in the product-costing system:
overhead cost pool
budgeted overhead
cost driver
estimated cost driver level
machine setups
$120,000
# of setups
120 setups
materials handling
104,400
# of barrels
8,700 barrels
quality control
264,000
# of inspections
1,100 inspections
other overhead cost
144,000
# of machine hours
12,000 machine hours
total overhead
$632,400
a current product order has the following requirements:
machine setups
8 setups
materials handling
606 barrels
quality inspections
80 inspections
machine hours
830 machine hours
direct labor hour
336 hours
what is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?
$9,960
$44,268
$43,741
$30,240
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