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Number of material moves 4 Number of inspections 6 Number of setups 8 ...

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Accounting

Number of material moves 4
Number of inspections
6
Number of setups
8
Number of nachine hours 80.
In the past, full manufacturing cost has been calculated by allocating overhead using a volume-based activity driver, direct labor hours. The
plant manager has heard of a new way of applying overhead that uses cost pools and activity drivers. Expected activity for the four activity
drivers that would be used are:
Machine hours : 5,000
Material moves 600
Setups : 200
Quality inspections 1,000
If the number of inspections is used to assign inspection costs, the amount of inspection costs allocated to the proposed job would be
$990.
$900.
$540.
$2700.
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