10 Jul Need back in 1 hour and 30 mins. 2. Texas Co. established the fo
Need back in 1 hour and 30 mins. 2. Texas Co. established the following overhead cost pools and cost drivers: Budgeted Estimated Overhead Cost Pool Overhead Cost Driver Cost Driver Level Quality controls $780,000 # of inspections 26,000 inspections Machine setups $720,000 # of setups 12,000 setups Other overhead costs $900,000 # of machine hrs 50,000 machine hrs Total overhead costs $2,400,000 A recent order for sailboats used: Quality inspections 750 inspections Machine setups 500 setups Machine hours (MHs) 2,400 machine hours Required: a. What is the overhead rate per machine hour if the number of machine hours (MHs) is used as a single cost driver under traditional costing system? b. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? c. Utilizing ABC, how much total overhead is assigned to the order?
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