Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for
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:
Overhead Cost Pool | Budgeted Overhead | Cost Driver | Estimated Cost Driver Level |
Machine setups | $120,000 | # of setups | 120 setups |
Materials handling | 104,400 | # of barrels | 8,700 barrels |
Quality control | 264,000 | # of inspections | 1,100 inspections |
Other overhead cost | 144,000 | # of machine hours | 12,000 machine hours |
Total overhead | $632,400 |
A current product order has the following requirements:
Machine setups | 8 setups |
Materials handling | 606 barrels |
Quality inspections | 80 inspections |
Machine hours | 830 machine hours |
Direct labor hour | 336 hours |
Compute the unit manufacturing cost and the total manufacturing costs of the order. Show calculations.