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

Activity Cost Pools ……….Estimated Overhead ….Expected Use of Cost Drivers per Activity

Ordering and receiving …………………..$ 90,000 ………………………………….15,000 orders

Etching ……………………………………480,000………………………… 60,000 machine hours

Soldering……………………………….. 1,760,000 ………………………….440,000 labour hours

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

Computer Parts Inc a manufacturer of computer chips employs activity based



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