A company manufactures equipment and has identified the following ABC cost pools and associated information:

Cost Pool Activity Measure Activity Rate

Customer orders number of orders $$38/$ order

Machine setup number of setups $$1,418/$ setup

Inspection direct labor hours $$17/$ direct labor hour

Delivery number of deliveries $$226/$ delivery

The company recently received an order that requires $1$ direct labor hours for inspection and one machine set up$.$  What is the overhead cost assigned to this customer order?

 

Answer rating: 100% (QA)

To calculate the overhead cost assigned to the customer order we need to multiply the activity rates ... View the full answer