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:
What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?
A)$9,960.
B)$30,240.
C)$43,741.
D)$44,268.
E)$109,352.

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: 
What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?
A)$9,960. 
B)$30,240. 
C)$43,741. 
D)$44,268. 
E)$109,352.

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: 
What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?
A)$9,960. 
B)$30,240. 
C)$43,741. 
D)$44,268. 
E)$109,352.