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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 Loaded model?
rev: 01_08_2016_QC_CS-28995
$31,875
$36,000
$28,125
$34,050
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