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Border Corporation identified the following activities related to annual expected overhead costs at the beginning of 2018. Expected Expected Expected Expected Overhead Activity Cost Activity

Border Corporation identified the following activities related to annual expected overhead costs at the beginning of 2018.

Expected

Expected

Expected

Expected

Overhead Activity

Cost

Activity Driver

Quantity

Moving Materials

$ 16,000

Number of moves

500

Inspections

$ 22,400

Number of inspection hours

350

Ordering

$ 13,900

Number of orders

2,780

Maintenance

$ 161,200

Machine hours

6,200

The company's normal activity is 5,000 direct labor hours per year.

During January 2018, the company reported the following for two of its products:

Product A

Product B

Direct materials

$2,575

$2,810

Direct labor

$2,100

$3,300

Units completed

40

50

Direct labor hours

80

120

Number of material moves

11

5

Number of inspection hours

50

8

Number of orders

50

20

Machine hours

70

90

  1. If Border Corporation uses direct labor hours in a traditional costing system to assign overhead, what is the total cost of Product A?

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