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Berry Co. produces a variety of scissors and other cutting instruments at its Rome manufacturing plant. The plant is highly automated and uses an activity-based
Berry Co. produces a variety of scissors and other cutting instruments at its Rome manufacturing plant. The plant is highly automated and uses an activity-based costing system to allocate overhead costs to its various product lines. The company expects to produce 24,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: UNIT LEVEL FACILITY ACTIVITIES: BATCH LEVEL Cost $50,000 ? PRODUCT LEVEL $10,000 LEVEL $120,000 Cost Driver 4,000 labor hrs 100 set ups % of use 24,000 units Production of 1,000 units of a pipe-cutting tool required 400 labor hours and 10 setups, consumed 30% of the product sustaining activities, and resulted in an overhead allocation of $15,400. What amount of batch-level overhead cost was expected during the period? A. $2,400 B. $12,500 C. $24,000 D. None of these answers is correct
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