Question

Sheen Co. manufacturers laser printers. It has outlined the following overhead cost drivers: Overhead Costs Pool Cost Driver Overhead Cost Budgeted Level for Cost Driver Quality control Number of inspections $ 72,000 1,200 Machine operation Machine hours 150,000 1,500 Materials handling Number of batches 1,200 30 Miscellaneous overhead cost Direct labor hours 57,000 5,700 Sheen Co. has an order for 1,000 laser printers that has the following production requirements: Number of inspections 265 Machine hours 225 Number of batches 5 Direct labor hours 740 Using activity-based costing, applied materials handling factory overhead for the 1,000 laser printers order is: Multiple Choice $15,360. $200. $22,500. $15,900. $7,400.

Answer 1

Answer:

$200

Explanation:

As for the information provided,

Quality control rate = $\frac{72,000}{1,200} =\ 60 per hour$

Machine operation = $\frac{150,000}{1,500} =\ 100 per hour$

Material Handling = $\frac{1,200}{30} =\ 40\ per batch$

Miscellaneous Overhead = $$\frac{57,000}{5,700} =\ 10 per hour$

The order of 1,000 laser printers

Require:

Quality control cost = $60 $\times$ 265 = $15,900

Machine operation = $100 $\times$ 225 = $22,500

Material Handling = $40 $\times$ 5 = $200

Miscellaneous Overheads = $10 $\times$ 740 = $7,400

Therefore, correct option is:

$200