Question: The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers. OVERHEAD COST POOL BUDGETED OVERHEAD COST

The controller for BEC Events Inc. uses activity-based-costing and has established the following overhead cost pools and cost drivers.

OVERHEAD COST POOLBUDGETED OVERHEAD COST

TRAVEL240,000

TENT SET-UP300,000

EQUIPMENT SET UP900,000

INSPECTIONS50,000

OTHER COSTS30,000

TOTAL OVERHEAD1,520,000

COST DRIVERBUDGETED LEVEL FOR COST DRIVER

# OF TRIPS120,000

# OF ORDERS600

# OR TYPES OF EQUIPMENT1,000

# OF INSPECTIONS100

LABOR HOUR3,000

BEC Events received an order requires 5 trips, 10 tent set-ups, 15 equipment set-ups, 10 inspections, and 40 labor hours.

1.What is the cost driver rate forEquipment set-ups?

2.What is the cost driver rate forInspections?

3.What is the total overhead assigned to this order?

4.If the controller were to use a single, predetermined overhead rate based onlabor hours, what is the rate ($)?

5.If the controller were to use a single, predetermined overhead rate based onlabor hours, what would be thetotal overheadassigned to this order?

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