Diamond Cleats Co. manufactures cleats for baseball shoes
Question
Diamond Cleats Co. manufactures cleats for baseball shoes. It has outlined
the following overhead cost drivers:
Overhead Cost Pool Cost Driver Overhead cost budgeted level for cost
Driver Budgeted
Quality control # of inspections 78,000 1,200
Machine Time machine hours 188,000 800
materials Handline # of batches 1,2000 50
Misc overhead cost Direct labor hours 50,000 5,000
Diamond Cleats Co. has an order for cleats that has the following production requirements:
Number of inspections 375
number of machine hours 220
number of batches 8
direct labor hours 840
Using activity-based costing, applied quality control factory overhead for the baseball cleat order is: