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(1 of 2) Steve's Best Company uses a simple costing system and applies overhead costs based on Direct Labor hours. Total Costs Activity-cost drivers $280,000
(1 of 2) Steve's Best Company uses a simple costing system and applies overhead costs based on Direct Labor hours. Total Costs Activity-cost drivers $280,000 14,000 hours $350,000 7,000,000 lines Activities Account inquiry Account billing Account verification accounts Correspondence letters Total overhead costs $93,750 50,000 accounts $29,000 4,000 letters Direct Labor Hours $752,750 15055 The above activities are used by Departments A follows: Department A 5,055 hours 2,100 hours 500,000 lines Direct Labor hours Account inquiry hours Account billing lines Account verification accounts Correspondence letters 7,000 accounts 1,200 letters How much of the total costs will be assigned to Department A
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