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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 Setups | Number of Components | Number of Direct Labor Hours | |
Standard | 11 | 6 | 295 | |
Deluxe | 29 | 13 | 205 | |
Overhead Costs | $60,000 | $58,900 |
Number of setups and number of components are identified as
activityminuscost
drivers for overhead. Assuming an
activityminusbased
costing system is used, what is the total amount of overhead costs assigned to the deluxe model?
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