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Durban Metal Products, Ltd., of the Republic of South Africa makes speclalty metal parts used In applications ranging from the cutting edges of bulldozer blades
Durban Metal Products, Ltd., of the Republic of South Africa makes speclalty metal parts used In applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity- based costing system for Internal decision-making purposes. The company has four activity cost pools as listed below Activity Cost Pool Order size Customer orderS Product testing Selling Activity Measure Activity Rate Nunber of direct labor-hours Nunber of custoner orders Number of testing hours Nunber of sales calls S17.3 per direct labor-hour 368.88 per customer order s 88.68 per testing hour $ 1,493.6 per sales call The managing director of the company would like Information concerning the cost of a recently completed order for heavy-duty traller axles. The order requlred 180 direct labor-hours, 15 hours of product testing, and 4 sales calls Required What Is the total overhead cost asslgned to the order for heavy-duty traller axles? Order size Customer orders Product testing Selling Total overhead cost
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