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A company uses an activity-based costing system composed of three processes: tooling, processing, and resources. The company has the following firm-wide totals from its costing
A company uses an activity-based costing system composed of three processes: tooling, processing, and resources.
The company has the following firm-wide totals from its costing system:
ToolingProcessingResourcesDriver quantity25 setups20,000 direct labor hours40,000 sq. ft.Costs per pool$500,000$2,000,000$800,000
Product D uses 3 setups, 3,000 direct labor hours, and 8,000 square feet.
What is the total overhead cost that should be assigned to Product D?
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