The Controller for Ocean Sailboats Inc $\quad 50$ Setups
Quality Inspections $\quad 305$

question 65

Essay

The controller for Ocean Sailboats Inc., a company which uses an automated process to make sailboats, established the following overhead cost pools and cost drivers: A recent order for sailboats used: Machine setups $\quad 50$ setups
Quality inspections $\quad 305$ inspections
Machine hours $\quad 2,024$ machine hours Required:
1.What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system?
2.Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
3.Utilizing ABC, how much total overhead is assigned to the order?

---

Definitions:

Stressor

Any event, situation, or stimulus that causes stress or a physiological response to challenge or threat.

Varied Diet

A diet that includes a wide range of different foods to ensure intake of an assortment of nutrients necessary for good health.

Moderate Exercise

Physical activity that is not too strenuous but sufficient to improve or maintain one's fitness level, often recommended for overall health.

Yoga

A group of physical, mental, and spiritual practices or disciplines which originated in ancient India, aiming to control and still the mind.