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Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Number
Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Number of Number of Number of Setups Components Direct Labor Hours Standard 18 5 280 Deluxe 29 11 210 Overhead costs $70,500 $57,600 Assume a traditional costing system applies the overhead costs based on direct labor hours. What is the total a amount of overhead costs assigned to the deluxe model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.) O A. $54,900 B. $24,686 C. $64,050 OD. $30,214 Lees Corp. is deciding whether to keep or drop a small segment of its business. Key information regarding the segment includes: Contribution margin: Avoidable fixed costs: Unavoidable fixed costs: 35,000 30,000 25,000 Given the information above, Lees should: A. Keep the segment because the contribution margin exceeds avoidable fixed costs. B. Drop the segment because the contribution margin is less than total fixed costs. C. Keep the segment because the contribution margin exceeds unavoidable fixed costs. D. Drop the segment because avoidable fixed costs exceed unavoidable fixed costs
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