Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year.
Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity
Ordering and Receiving Orders $140000 500 orders
Machine Setup Setups 315000 450 setups
Machining Machine 1562500 125000 MH
hours
Assembly Parts 1240000 1000000 parts
Inspection Inspections 320000 500 inspections
If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is:.

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Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

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