5

A company makes two products-Product A and B. Data regarding the two products follow:

	Direct Labor-Hours per Unit	Annual Production
Product A	0.75	20,000 units
Product B	0.50	50,000 units

Additional information is as follows:

1. Product A requires $40 in direct materials per unit, and Product B requires $32.
2. The direct labor wage rate is $18 per hour.
3. The companys activity-based absorption costing system has the following activity cost pools.

	Estimated					Expected Activity
Activity Cost Pool (and Activity Measures)	Overhead Cost					Product A			Product B		Total
Machine setups (number of setups)		$	100,000				100		300		400
Special processing (machine-hours)		$	200,000				2,000		6,000		8,000
General factory (Direct labor-hours)		$	150,000				15,000		25,000		40,000

How much overhead cost would be assigned from the Special processing activity to Product A?