Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below:

The managing director of the company would like information concerning the cost of a recently completed order for hard-rock drills. The order required 100 direct labour-hours, 20 hours of product testing, and five sales calls.

Required:

Prepare a report showing the overhead cost of the order for hard rock drills according to the ABC system. What is the total overhead cost assigned to the order?

Activity Rate Activity Cost Pool Activity Measure Order size..... Customer orders. Product testing . $17.60 per direct labour-hour $360.00 per customer order $79.00 per testing hour $750.00 per sales call Number of direct labour-hours Number of customer orders Number of testing hours Selling Number of sales calls