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Question 2

Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:

Overhead Costs Pool	Cost Driver	Overhead Cost Budgeted Level for Cost Driver				Budgeted
Quality control	# of inspections	$	64,800				800
Machine time	Machine hours		182,325				663
Materials handling	# of Batches		5,850				90
Miscellaneous overhead cost	Direct labor hours		62,000				5,800

Diamond Cleats Co. has an order for cleats that has the following production requirements:

Number of inspections	495
Number of machine hours	300
Number of batches	7
Direct labor hours	1,200

Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:

Multiple Choice

• $29,250.

• $31,020.

• $40,095.

• $21,950.

• $20,400.

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $540,000 payroll for 6,200 direct labor-hours. Listed below is cost driver information used in the product-costing system:

Overhead Cost Pool	Budgeted Overhead			Cost Driver		Estimated Cost Driver Level
Machine setups	$	756,350		# of setups		210	setups
Materials handling		109,800		# of barrels		9,150	barrels
Quality control		660,000		# of inspections		2,000	inspections
Other overhead cost		495,000		# of machine hours		16,500	machine hours
Total overhead	$	2,021,150

A current product order has the following requirements:

Machine setups	18	setups
Materials handling	660	barrels
Quality inspections	85	inspections
Machine hours	1,200	machine hours
Direct labor hour	444	hours

What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours? (Round your intermediate calculation to 2 decimal places.)

Multiple Choice

• $10,410.

• $38,671.

• $67,524.

• $144,740.

• $391,188.

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