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ACB Company manufactures two models of a curling iron: a standard model and a deluxe model. Using activity-based costing, three activities (1. Setup, 2. Inspection,
ACB Company manufactures two models of a curling iron: a standard model and a deluxe model. Using activity-based costing, three activities (1. Setup, 2. Inspection, 3. Ordering) have been identified. These activities, the cost drivers, as well as the total cost associated with them for the month of December, are shown below: (2) Inspections 150 (3) Orders (1) Setups Standard 460 167 Deluxe 620 210 129 Total activity cost $25,000 $11,000 $19,000 How much overhead should be allocated to Standard from Setup using activity-based costing?
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