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Durban Metal Products. Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades
Durban Metal Products. Ltd., 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 activity-based costing system for internal decision-making 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 heavy-duty trailer axles. The order required 180 direct labor-hours. 19 hours of product testing, and 4 sales calls. The results of the first-stage allocation of the activity-based costing system at Durban Metal Products. Ltd., in which the activity rates were computed, appear below: Prepare a report showing the overhead cost of the order for heavy-duty trailer axles. What is the total overhead cost of the order
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