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Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades
Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications
ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an
activitybased costing system for internal decisionmaking purposes. The company has four activity cost pools as
listed below:
The managing director of the company would like information concerning the cost of a recently completed order for
heavyduty trailer axles. The order required direct laborhours, hours of product testing, and sales calls.
Required:
What is the total overhead cost assigned to the order for heavyduty trailer axles?
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