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Current Attempt in Progress Cullumber, Corp. manufactures balloons that it then packages and sells throughout the country. Cullumber would like to have a better understanding
Current Attempt in Progress Cullumber, Corp. manufactures balloons that it then packages and sells throughout the country. Cullumber 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, $32500 ( 2500 inspection hours); maintenance, \$18000 (1900 maintenance hours); moving and sorting, \$13200 (660 pounds of materials); and factory supervisor wages, $59600 (4700 supervisor hours). Cullumber will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources: Red balloons: 1400 inspection hours, 1440 maintenance hours, 410 pounds of materials, and 2450 supervisor hours Blue balloons: 1100 inspection hours, 460 maintenance hours, 250 pounds of materials, 2250 supervisor hours How much of the Moving and Sorting MOH will be allocated to the blue balloons? $9850.00 $13200.00 $8200.00 $5000.00
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