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Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered: Product Base Loaded Overhead
Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered: Product Base Loaded Overhead costs Number of Components 15 25 $27,000 Number of Setups 20 40 Number of Direct Labor Hrs 700 600 $22,500 The number of components and number of setups are chosen as activity-cost drivers for overhead. Assuming an ABC costing system is being used, what is the total overhead cost assigned to the Base model? Multiple Choice $15,450. $21,375. $13,500. $17,625. $15,625
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