Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.     Activity Cost Pool         Cost Driver         Est. Overhead           Cost Driver Activity     Ordering and Receiving Orders $   85000   500 orders Machine Setup Setups 265500   450 setups Machining Machine hours 1412500   125000 MH Assembly Parts 1130000   1000000 parts Inspection Inspections 265000   500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $ 0.09 per part. $ 170 per order. $ 6316 per order. $ 0.85 per direct labor hour.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 10E: Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair...
icon
Related questions
Question

Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.

    Activity Cost Pool         Cost Driver         Est. Overhead           Cost Driver Activity    
Ordering and Receiving Orders $   85000   500 orders
Machine Setup Setups 265500   450 setups
Machining Machine hours 1412500   125000 MH
Assembly Parts 1130000   1000000 parts
Inspection Inspections 265000   500 inspections


If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is

$ 0.09 per part.
$ 170 per order.
$ 6316 per order.
$ 0.85 per direct labor hour.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,