Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for
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Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $492,000 payroll for 5,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:
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Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead Cost Driver $ 464,950 # of setups # of barrels 107,400 464,000 # of inspections 319,000 # of machine hours $1,355,350 Estimated Cost Driver 170 setups 8,950 barrels 1,600 inspections 14,500 machine hours Overhead Cost Pool Machine setups Materials handling Quality control Other overhead cost Total overhead Budgeted Overhead Cost Driver $ 464,950 # of setups # of barrels 107,400 464,000 # of inspections 319,000 # of machine hours $1,355,350 Estimated Cost Driver 170 setups 8,950 barrels 1,600 inspections 14,500 machine hours
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The correct answer is 93470 Explanation To calculate the predetermined overh... View the full answer
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