Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled.

Number of Number of Number of

Product Setups Components Direct Labor Hours

Standard 22 8 375

Deluxe 28 12 225

Overhead costs $20,000 $40,000

1. Assume a traditional single-rate costing system applies the total $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model and how would that be journalized? (2 points)

2. Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the number of setups amount of overhead costs assigned to the deluxe model? (2 points)

3. Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the deluxe model and how would that be journalized? (3 points)