hollins inc a manufacturer of computer chips employs activity based costing 538948

Hollins, Inc., a manufacturer of computer chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2012.

Estimated

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Expected Use of

Activity Cost Pools

Overhead

Cost Drivers per Activity

Ordering and receiving

$90,000

12,000 orders

Etching

480,000

60,000 machine hours

Soldering

1,760,000

440,000 labor hours

For 2012, the company had 11,000 orders and used 50,000 machine hours, and labor hours totaled 500,000. What is the total overhead applied?

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