Question: Randel Manufacturing has five activity cost pools and two products (budget vacuum and deluxe vacuum) Budget Vacuum: 700,000 produced: 800 Orders; 500 Setups; 550 Inspections;

 Randel Manufacturing has five activity cost pools and two products (budget

Randel Manufacturing has five activity cost pools and two products (budget vacuum and deluxe vacuum) Budget Vacuum: 700,000 produced: 800 Orders; 500 Setups; 550 Inspections; 150,000 Machine Hours; 1,200,000 Parts Deluxe Vacuum: 200,000 produced: 1,200 Orders; 400 Setups; 450 Inspections; 100,000 Machine Hours; 800,000 Parts The following information is available: Total overhead costs of $3,327,000 are broken out as follows: Ordering and Receiving - $130,000 - Cost driver is number of orders Machine setups - $297,000 - Cost driver is number of setups Inspections - $300,000 - Cost driver is number of inspections Machining - $1,000,000 - Cost driver is number of machine hours Assembly - $1,600,000 - Cost driver is number of parts Estimated Direct Labor hours used: 11,090 1. Using TRADITIONAL costing, and assuming overhead is applied based on direct labor hours, compute the predetermined overhead rate. (.e. $25.00)

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