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Carla Vista Corp. manufactures balloons that it then packages and sells throughout the country. Carla Vista would like to have a better understanding of its
Carla Vista Corp. manufactures balloons that it then packages and sells throughout the country. Carla Vista would like to have a better understanding of its overall budgets, and has decided to implement the use of Activity-Based Costing (ABC). It has decided upon four unique key activities of which to assign activity-based rates to the following Manufacturing Overhead (MOH) costs: quality inspection, $37500 (2500 inspection hours); maintenance, $17700 (2000 maintenance hours); moving and sorting, $12420 (690 pounds of materials); and factory supervisor wages, $59800 (4900 supervisor hours). Carla Vista will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources: Red balloons: 1400 inspection hours, 1450 maintenance hours, 410 pounds of materials, and 2470 supervisor hours Blue balloons: 1100 inspection hours, 550 maintenance hours, 280 pounds of materials, and 2430 supervisor hours How much of the Quality Inspection MOH will be allocated to the blue balloons
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