The controller for Alabama Cooking Oil Co.established the following overhead cost pools and cost drivers: An order of 800 barrels of cooking oil used: $$\begin{array} { | l | r | }
\hline \text { \# of setups } & 14 \
\hline \text { \# of barrels } & 800 \
\hline \text { \# of inspections } & 22 \
\hline \text { \# of machine hours } & 1,100 \
\hline
\end{array}$$ Required:
(1) What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? (Round your intermediate calculation to the nearest cent and final answer to the nearest whole dollar.)
(2) Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
(3) Using ABC costing, how much total overhead is assigned to the order?

Question

The controller for Alabama Cooking Oil Co.established the following overhead cost pools and cost drivers:  An order of 800 barrels of cooking oil used: $$\begin{array} { | l | r | } 
\hline \text { \# of setups } & 14 \
\hline \text { \# of barrels } & 800 \
\hline \text { \# of inspections } & 22 \
\hline \text { \# of machine hours } & 1,100 \
\hline
\end{array}$$ Required:
(1) What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? (Round your intermediate calculation to the nearest cent and final answer to the nearest whole dollar.)
(2) Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
(3) Using ABC costing, how much total overhead is assigned to the order?

Quizplus · Accepted Answer

The Answer of The controller for Alabama Cooking Oil Co.established the following overhead cost pools and cost drivers:  An order of 800 barrels of cooking oil used: $$\begin{array} { | l | r | } 
\hline \text { \# of setups } & 14 \
\hline \text { \# of barrels } & 800 \
\hline \text { \# of inspections } & 22 \
\hline \text { \# of machine hours } & 1,100 \
\hline
\end{array}$$ Required:
(1) What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? (Round your intermediate calculation to the nearest cent and final answer to the nearest whole dollar.)
(2) Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
(3) Using ABC costing, how much total overhead is assigned to the order?

The Controller for Alabama Cooking Oil Co Required: (1) What Is the Overhead Rate Per Machine Hour

The Controller for Alabama Cooking Oil Co Required:
(1) What Is the Overhead Rate Per Machine Hour