Question: The controller for Gardo Machine Shop has established the following overhead cost pools and cost drivers 1. Overhead Cost Pool Machine setups Material handling Quality

 The controller for Gardo Machine Shop has established the following overhead

The controller for Gardo Machine Shop has established the following overhead cost pools and cost drivers 1. Overhead Cost Pool Machine setups Material handling Quality control inspection Other overhead costs Total Budgeted Overhead Cost S240,000 90,000 48,000 160.000 Cost Driver Number of setups Units of raw material Number of inspections Machine hours Budgeted Level Overhead Cost Pool Machine setups Material handling Quality control Other overhead for Cost Driver 200 setups 60,000 units 1.200 inspections 20,000 machine hours Pool Rate $1,200 per setup S1.50 per unit S40 per inspection S8 per machine hour Order no. 715 has the following production requirements: Machine setups: 7 Raw material: 11.200 units Inspections: 16 Machine hours: 850 Required A. Compute the total overhead that should be assigned to order no. 715 by using activity- based costing

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