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AnnKay Company manufactures two products, V and F. Bangor has estimated overhead costs as follows: setting up machines ($160,000), machining ($300,000) and inspecting ($100,000).
AnnKay Company manufactures two products, V and F. Bangor has estimated overhead costs as follows: setting up machines ($160,000), machining ($300,000) and inspecting ($100,000). Information on the two products follows: Activity Cost Pools and Drivers Cost Pools V F Direct labor hours 60,000 100,000 Machine setups 2,400 1,600 Machine hours 96,000 104,000 Inspections 3,000 2,000 Overhead is applied to product V using direct labor hours. What is the total amount of overhead charged to this product line using traditional costing? Hint: Add all estimated overhead costs for each cost pool to calculate the predetermined overhead rate. O $210,000 $350,000 $280,000 O $105,000
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