Packaging 1,760,000 440,000 labor hours
For 2017 , the company had 11,000 orders and used 50,000 machine hours , and labor hours totaled 500,000 . What is the total overhead applied ?
BE4-12
Spin Cycle Architecture uses three activity pools to apply overhead to its projects . Each activity has a cost driver used to allocate the overhead costs to the projects . The activities and related overhead costs are as follows : initial concept formation $ 40,000 , design $ 300,000 , and construction oversight $ 100,000 . The cost drivers and expected use are as follows .
Activities
Cost Drivers Expected Use of Cost Drivers per Activity
Initial concept formation 20
Design 150,000
Construction oversight 100
Number of project changes
Square feet
Number of months
( a ) Compute the predetermined overhead rate for each activity .