Reference no: EM131734534

Question - Wake Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $200,000 in overhead costs. After implementing activity-based costing (ABC),the company's accountant identified the following related information: Proportion Activity Allocation Base of Overhead Cost Material delivery and handling Number of deliveries 30%Inspections Number of inspections 25%Supervision Hours of supervisor time 20%Purchasing Number of purchase orders 25%The number of activities for standard and custom-made cabinets is as follows: Standard Custom-made Number of deliveries 200 100 Number of inspections 600 400 Hours of supervisor time 1,800 2,200 Number of purchase orders 1,000 1,000 During the past year, Wake accepted a customer order for a set of custom-made cabinets that would require the following: Direct labor cost (25 hours at $15 per hour) $375 Direct materials (wood) (900 ft at $3.00 per foot) $2,700 Number of deliveries 3 Number of inspections 5 Hours of supervisor time 5 Number of purchase orders 3 Refer to the Wake Construction information above. How much overhead should be applied to the above customer order?