Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:...

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Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:...

Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined the following overhead cost drivers:

Overhead Costs Pool	Cost Driver	Overhead Cost Budgeted Level for Cost Driver		Budgeted
Quality control	# of inspections	$	51,100		700
Machine time	Machine hours		153,765		603
Materials handling	# of Batches		3,150		70
Miscellaneous overhead cost	Direct labor hours		63,000		6,400

Diamond Cleats Co. has an order for cleats that has the following production requirements:


Number of inspections	435
Number of machine hours	260
Number of batches	8
Direct labor hours	1,040

Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:

Multiple Choice

$28,850.
$30,620.
$31,755.
$21,550.
$20,000.

business accounting

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Answer 1

Answer #1

Answer: $31,755.

Explanation

Using activity-based costing, applied quality control factory overhead for the baseball cleat order is:

= ($51,100 / 700) x 435

= 73 x 435

= $31,755

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Answer 2

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