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:
Using ABC,how much material handling 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: 
A current product order has the following requirements: 
Using ABC,how much material handling 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: 
A current product order has the following requirements: 
Using ABC,how much material handling overhead is assigned to the order?
A)$19,200. 
B)$8,000. 
C)$11,108. 
D)$9,960. 
E)$7,272.