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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:

Activity Cost Pool

Activity Measure

Activity Rate

Order size

Number of direct labor-hours

$

17.60

per direct labor-hour

Customer orders

Number of customer orders

$

366.00

per customer order

Product testing

Number of testing hours

$

83.00

per testing hour

Selling

Number of sales calls

$

1,500.00

per sales call

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 150 direct labor-hours, 19 hours of product testing, and 5 sales calls.

Required:

What is the total overhead cost assigned to the order for heavy-duty trailer axles?

Activity Cost Pool

ABC Cost

Order size

Customer orders

Product testing

Selling

Total overhead cost

$ 0

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