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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: Number of Components Number
Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered: Number of Components Number of Setups 20 Number of Direct Labor Hrs 700 15 Product Base Loaded Overhead costs 01-18-20 40 600 $27,000 $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 Loaded model? Multiple Choice $31,875. $31125. $34,050. $36,000. $28,125
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