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5. Seville Inc., a manufacturer of personal grooming equipment, uses an activity-based costing system to assign costs in its blade-making division. Activity Cost allocation rate
5. Seville Inc., a manufacturer of personal grooming equipment, uses an activity-based costing system to assign costs in its blade-making division. Activity Cost allocation rate Set-ups Grinding Packaging Est. Indirect Activity Allocation base Costs $30,000 Set-ups $280,000 Machine hours (MH) $210,000 Number of blades $50.00/set-up $280.00/MH $1.50/blade The following units were produced in May with the following information: Part # Trimmer Blade Clipper Blade Balding Blade # Produced 32,000 84,000 24,000 Materials Costs $320,000 $1,000,000 $288,000 # Set-ups 100 300 MHS 200 700 200 100 The total MOH allocated to Balding Blades would be: A) $362,000 B) $337,000 C) $109,000 D) $74,000
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