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julsineya [31]
3 years ago
15

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:

Business
1 answer:
Zarrin [17]3 years ago
6 0

Answer:

the total overhead cost is $1,560

Explanation:

The computation of the total overhead cost for product X is given below:

Setup cost = 40,000 ÷ 200 × 4 = 800

Ordering cost  = 20,000 ÷ 1,000 × 8 = 160

Maintenance cost  = 50,000 ÷ 5,000 × 50 = 500

Power = 10,000 ÷ 10,000 × 100 = 100

Hence, the total overhead cost is $1,560

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