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Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled. Number ofNumber
Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled.
Number ofNumber ofNumber of
ProductSetupsComponentsDirect Labor Hours
Standard228375
Deluxe2812225
Overhead costs$20,000$40,000
Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?
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