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:Using ABC, how much machine setup overhead is assigned to the order?
A)$19,200.
B)$8,000.
C)$11,108.
D)$9,960.
E)$7,272.

Question

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:Using ABC, how much machine setup overhead is assigned to the order?
A)$19,200. 
B)$8,000. 
C)$11,108. 
D)$9,960. 
E)$7,272.

Quizplus · Accepted Answer

The Answer of 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:Using ABC, how much machine setup overhead is assigned to the order?
A)$19,200. 
B)$8,000. 
C)$11,108. 
D)$9,960. 
E)$7,272.