The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers: Budgeted Overhead Estimated Cost Driver Level $14,300 11 setups $12,480 780 barrels $31,620 # of inspections 102 inspections $17,250 # of machine hours 1,150 machine hours Overhead Cost Pool Machine setup Materials handling Cost Driver Quality control Machine utilities/ maintenance An order of 80 finished barrels of cooking oil used: Machine setups 1 setup Materials handling 82 barrels Select one: O a. 98 O O O # of setups # of barrels Quality inspections 10 inspections Machine hours ??? machine hours If the company uses activity-based costing and the total overhead charged to the order was $7,182, how many machine hours were used to complete the order? b. 109 c. 118 d. 479

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 8P: Journalizing the distribution of service department costs to production departments Required: Using...
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The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers:
Budgeted
Overhead
$14,300
11 setups
$12,480
780 barrels
# of inspections
102 inspections
$31,620
$17,250 # of machine hours 1,150 machine hours
Overhead Cost Pool
Cost Driver
Select one:
a. 98
b. 109
c. 118
d. 479
Machine setup
Materials handling
Quality control
Machine utilities/ maintenance
An order of 80 finished barrels of cooking oil used:
Machine setups
1 setup
82 barrels
Materials handling
Quality inspections 10 inspections
Machine hours ??? machine hours
If the company uses activity-based costing and the total overhead charged to the order was $7,182, how many machine hours were used to complete the order?
# of setups
# of barrels
Estimated Cost
Driver Level
Transcribed Image Text:The controller for Tamale Cooking Oil Co. established the following overhead cost pools and cost drivers: Budgeted Overhead $14,300 11 setups $12,480 780 barrels # of inspections 102 inspections $31,620 $17,250 # of machine hours 1,150 machine hours Overhead Cost Pool Cost Driver Select one: a. 98 b. 109 c. 118 d. 479 Machine setup Materials handling Quality control Machine utilities/ maintenance An order of 80 finished barrels of cooking oil used: Machine setups 1 setup 82 barrels Materials handling Quality inspections 10 inspections Machine hours ??? machine hours If the company uses activity-based costing and the total overhead charged to the order was $7,182, how many machine hours were used to complete the order? # of setups # of barrels Estimated Cost Driver Level
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