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Bird Company has the following overhead costs and cost drivers.Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Estimated Overhead Cost Driver Activity

Bird Company has the following overhead costs and cost drivers.Direct labor hours are estimated at 100,000 for the year.

Activity Cost Pool Cost Driver Estimated Overhead Cost Driver Activity
Ordering and Receiving Orders $20,900 500 orders
Machine Setup Setups $30,500 450 setups
Machining Machine hours $52,500 125,000 hours
Assembly Parts $63,600 1,000,000 parts
Inspection Inspections $36,000 500 inspections



Overhead is applied using traditional costing based on direct laborhours. What is the overhead application rate?

Jun 01 2021 View more View Less

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