Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:
Cost Pool -- Budgeted Cost - Cost Driver - Cost Driver Lvl
Setup - 40,000 - Number of setups - 200
Ordering - 20,000 - Number of orders - 1,000
Maintenance - 50,000 - Machine Hours - 5,000
Power- 10,000 - Kilowatt Hours - 10,000
Total direct labor hours budgeted = 2,000 hours.
The following data applies to Product X, one of the products completed during the year
Direct Materials - 1,000
Direct Labor - 1,200
Unites completed - 100
Direct labor hours - 40
Number of setups - 4
Number of orders - 8
Machine Hours - 50
Kilowatt hours - 100
If a volume-based costing system based on direct labor hours to assign overhead is used, the total overhead cost for Product X will be:
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Ответ:
the total overhead cost is $1,560
Explanation:
The computation of the total overhead cost for product X is given below:
Setup cost = 40,000 ÷ 200 × 4 = 800
Ordering cost = 20,000 ÷ 1,000 × 8 = 160
Maintenance cost = 50,000 ÷ 5,000 × 50 = 500
Power = 10,000 ÷ 10,000 × 100 = 100
Hence, the total overhead cost is $1,560
Ответ:
6(5 + 7)
Step-by-step explanation: