The controller for Wolfe Machining has established the following overhead cost pools and cost drivers:...
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The controller for Wolfe Machining has established the following overhead cost pools and cost drivers: Overhead Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Machine set-ups $240,000 Number of set-ups 200 set-ups Material handling $90,000 Units of raw material 60,000 units Quality control inspection $48,000 Number of inspections 1.200 inspections Other overhead cost $160,000 Machine hours 20.000 machine hours Total $538.000 Order No. 715 has the following production requirements: Machine set ups: 7 Raw material: 11.200 units Inspections: 16 Machine hours: 850 Required: A. Suppose that Wolfe were to use a single, predetermined overhead rate based on number of set-ups. Compute the rate per set-up and the total overhead assigned to Order No. 715. (5 points) B. Compute the total overhead that should be assigned to Order No. 715 by using activity-based costing (7 points)
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