Hello, I recently received help on here with this problem and I understand it, however, I don't understand why the $114 is added for the custom order for the answer when the problem doesn't state any custom orders are being made. Please see attached for the excel screenshot and I included the assigned below as well.

Thanks!

Problem:

Barbee Fabrication produces sheet metal for auto applications.Barbee uses an activity-based costing system.The company's cost pools and other cost information is as follows:

Activity cost pool Activity Measure Activity Rate

Order size Direct labor hours $14 per direct labor hour

Customer orders Customer orders $114 per customer order

Quality testing Test hours $74 per hour

Sales Sales calls $634 per sales call

Order #1 required 475 direct labor hours, 9 hours of quality testing, and 7 sales calls

Order #2 required 115 direct labor hours, 48 hours of quality testing, and 19 sales calls

Total overhead cost assigned

Activity Cost Pool Order #1 Order #2

Order Size 6650 1610

Customer Order 114 114

Quality Testing 666 3552

Sales 4438 12046

Total Overhead cost 11868 17322

AutoSave (O Off) ACT500CTworksheetMod05Option02 - Excel Search Warren W X File Home Insert Page Layout Formulas Data Review View Help Share Comments Calibri 11 - AA ap Wrap Text General Insert * Delete * " Ap O Paste BIU Merge & Center $ ~ % " .0 Conditional Format as Cell Formatting * Table Styles Format Sort & Find & Ideas Filter ~ Select Clipboard Font Alignment Number Styles Cells Editing Ideas C17 X =634*19 A B C D E F G H J K L M N O - W N Activity cost pool Activity Measure Activity Rate Order size Direct labor hours $14 per direct labor hour Customer orders Customer orders $114 per customer order Quality testing Test hours $74 per hour 7 Sales Sales calls $634 per sales call 9 Order #1 required 475 direct labor hours, 9 hours of quality testing, and 7 sales calls 10 Order #2 required 115 direct labor hours, 48 hours of quality testing, and 19 sales calls 11 12 Total overhead cost assigned 13 Activity Cost Pool Order #1 Order #2 14 Order Size 5650 1610 15 Customer Order 114 114 16 Quality Testing 666 3552 17 Sales 4438 12046 18 Total Overhead cost 11868 17322 19 20 21 Sheet1 + Ready + 100% Type here to search N X W 10:34 AM 9/13/2020