Orange, Inc. has identified the following cost drivers for its expected overhead costs for the...
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Accounting
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:
| Cost Pools | Budgeted Cost | Cost Driver | Cost Driver Level | |||
| Setup | $ | 150,000 | Number of setups | 750 | ||
| Ordering | 75,000 | Number of orders | 3,750 | |||
| Maintenance | 187,500 | Machine hours | 18,750 | |||
| Power | 37,500 | Kilowatt hours | 37,500 | |||
Total direct labor hours budgeted = 7,500 hours.
The following data applies to Product X, one of the products completed during the year.
| Direct materials | $ | 3,750 |
| Direct labor | $ | 4,500 |
| Units completed | 375 | |
| Direct labor hours | 150 | |
| Number of setups | 15 | |
| Number of orders | 30 | |
| Machine hours | 150 | |
| Kilowatt hours | 375 | |
If the activity-based cost drivers are used to allocate overhead cost, the total overhead cost of Product X will be:
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