Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:A current product order has the following requirements:$\begin{array}{lrr}
\text { Machine setups } & 8 & \text { setups } \
\text { Materials handling } & 606 & \text { barrels } \
\text { Quality inspections } & 80 & \text { inspections } \
\text { Machine hours } & 830 & \text { machine hours } \
\text { Direct labor hour } & 336 & \text { hours }
\end{array}$
Using ABC, how much total overhead is assigned to the order?
A)$42,160.
B)$43,740.
C)$44,268.
D)$44,432.
E)$45,993.

Question

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:A current product order has the following requirements:$\begin{array}{lrr}
\text { Machine setups } & 8 & \text { setups } \
\text { Materials handling } & 606 & \text { barrels } \
\text { Quality inspections } & 80 & \text { inspections } \
\text { Machine hours } & 830 & \text { machine hours } \
\text { Direct labor hour } & 336 & \text { hours }
\end{array}$
Using ABC, how much total overhead is assigned to the order?
A)$42,160. 
B)$43,740. 
C)$44,268. 
D)$44,432. 
E)$45,993.

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 $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:A current product order has the following requirements:$\begin{array}{lrr}
\text { Machine setups } & 8 & \text { setups } \
\text { Materials handling } & 606 & \text { barrels } \
\text { Quality inspections } & 80 & \text { inspections } \
\text { Machine hours } & 830 & \text { machine hours } \
\text { Direct labor hour } & 336 & \text { hours }
\end{array}$
Using ABC, how much total overhead is assigned to the order?
A)$42,160. 
B)$43,740. 
C)$44,268. 
D)$44,432. 
E)$45,993.

Everlast Co Using ABC, How Much Total Overhead Is Assigned to the Plant