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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 Number of Components
Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered:
Product | Number of Components | Number of Setups | Number of Direct Labor Hrs | ||||||
Base | 15 | 20 | 700 | ||||||
Loaded | 25 | 40 | 600 | ||||||
Overhead costs | $ | 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 Base model?
Multiple Choice
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$15,450.
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$15,625.
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$13,500.
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$21,375.
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$17,625.
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