Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:...

 

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Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Setup Ordering Maintenance Power Budgeted Cost $190,000 Cost Driver Number of setups Number of orders 95,000 237,500 Machine hours 47,500 Kilowatt hours Total direct labor hours budgeted = 9,500 hours. Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Kilowatt hours The following data applies to Product X, one of the products completed during the year. Cost Driver Level 950 4,750 23,750 47,500 $4,750 $5,700 475 190 19 38 190 475 If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be: Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: Cost Pools Setup Ordering Maintenance Power Budgeted Cost $190,000 Cost Driver Number of setups Number of orders 95,000 237,500 Machine hours 47,500 Kilowatt hours Total direct labor hours budgeted = 9,500 hours. Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Kilowatt hours The following data applies to Product X, one of the products completed during the year. Cost Driver Level 950 4,750 23,750 47,500 $4,750 $5,700 475 190 19 38 190 475 If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:

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To calculate the total overhead cost of Product X using activitybased costing ABC you first need to determine the overhead allocation rate for each co... View the full answer