Power Company manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $ payroll for direct laborhours. Listed below is cost driver information used in the productcosting system:
tableOverhead Cost Pool,Budgeted Overhead,Cost Driver,Estimated Cost Driver LevelMachine setups,$Number of setups, setupsMaterials handling,Number of barrels, barrelsQuality control,Number of inspections, inspectionsOther overhead cost,Number of machine hours, machine hoursTotal overhead,$
A current product order has the following requirements:
tableMachine setups, setupsMaterials handling, barrelsQuality inspections, inspectionsMachine hours, machine hoursDirect labor hour, hours
Using activitybased costing, how much material handling overhead is assigned to the order?
Multiple Choice
$
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