15

Adventure Inc. produces many products, including a Toy Doll product and a Toy Racing Car product. The following is key information about its overhead costs and its activity-based costing system: - Each year, it incurs $580,000 of overhead costs in its three departments: Production ($160,000), Inspection ($120,000) and Shipping ($300,000). - Each department does a different activity. - Adventure Inc, uses a 3-cost-pool system with a cost pool for each department, and uses the main activity in that department as the cost driver. - It calculates its cost driver rates based on the practical capacity, of the main activity for each department. - The practical capacity for each department is: 2,000 machine-hours for the Production department, 300 inspections for the Inspections department, and 3,000 orders for the Shipping department. Information below shows the resource usage of two of Adventure Inc's many products: How much overhead is assigned to Toy Doll if the company uses activity-based costing? $245,647$322,222.22$102,000$312,638$267,357$88,000