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2 'IO points eBook Prim References Mc Graw Hill Exercise 5-9 (Static) Second-Stage Allocation to an Order [L054] Durban Metal Products, Ltd., of the Republic
2 'IO points eBook Prim References Mc Graw Hill Exercise 5-9 (Static) Second-Stage Allocation to an Order [L054] Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activitybased costing system for internal decisionmaking purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct laborhours 5 16.35 per direct laborhour Customer orders Number of customer orders 5 328.88 per customer order Product testing Number of testing hours 5 39.88 per testing hour Selling Number of sales calls $1,898.88 per sales call The managing director ofthe company would like information concerning the cost of a recently completed order for heavydutyr trailer axles. The order required 200 direct laborhours, 4 hours of product testing, and 2 sales calls. Required: What is the total overhead cost assigned to the order for heavyduty trailer axles? Order size Customer orders Product testing Selling Total overhead cost
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