Everlast Co

Multiple Choice

Everlast Co.manufactures a variety of drill bits.The company's plant is partially automated.The budget for the year includes $432,000 payroll for 4,800 direct labor-hours.Listed below is cost driver information used in the product-costing system:

A current product order has the following requirements:
Using ABC,how much machine setup overhead is assigned to the order?

A) $19,200.
B) $8,000.
C) $11,108.
D) $9,960.
E) $7,272.