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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: Product Number
Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Number of Set-ups Number of Components Number of Direct Labour Hours Standard 22 8 200 Deluxe 28 12 800 Activity Cost driver Total cost Set-ups Number of Set-ups Machine-related Number of machine hours $30,000 $60,000 $40,000 Inspections Number of direct labour hours The number of set-ups and the number of components are identified as activity-cost drivers for overheads. An activity-based costing system is used. What is the total amount of overhead costs assigned to the deluxe model
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