Testbank Exercise 1 Jones Manufacturing Company makes two products. The company's budget includes $428,260 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 18,620. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information:
| Estimated Cost |
Estimated Activities |
| Orders processed |
$74,100 |
4,940 orders |
| Machine setups |
11,000 |
550 machine hours |
| Shipping |
24,112 |
54,800 shipments |
| $109,212 |
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