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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:

 
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