Cost pool ($100,000 maintenance) → Cost driver (machine hours) → Cost object (Product X gets 30% of hours → $30,000) 7. Real-world mini case Company: Furniture maker Problem: Overhead allocated by direct labor hours, but some automated products use fewer labor hours yet more machine time and setups.
Cost pool ($100,000 maintenance) → Cost driver (machine hours) → Cost object (Product X gets 30% of hours → $30,000) 7. Real-world mini case Company: Furniture maker Problem: Overhead allocated by direct labor hours, but some automated products use fewer labor hours yet more machine time and setups.
