Harnack Company had the following information:
Budgeted cost driver activity levels:
Actual cost driver activity levels:

-If Job 400 used 230 production setups, the overhead applied using production setups as the cost driver should be

Question

Harnack Company had the following information:
  Budgeted cost driver activity levels:
  Actual cost driver activity levels:
 
-If Job 400 used 230 production setups, the overhead applied using production setups as the cost driver should be

Quizplus · Accepted Answer

The overhead applied is calculated by multiplying the number of production setups (230) by the cost per setup. Assuming the cost per setup is $30 (since $6,900 / 230 = $30), the overhead applied would be 230 setups * $30 = $6,900.

Harnack Company Had the Following Information