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Durban Metal Products makes specialty metal parts and uses activity - based costing for internal decision - making purposes. The company has four activity cost
Durban Metal Products makes specialty metal parts and uses activitybased costing for internal decisionmaking purposes. The company has four activity cost pools as follows:
tabletableActivity Cost PoolOrder sizeActivity Measure,Activity RatetableOrder sizeCustomer orderstableNumber of direct laborhoursNumber of customer$ per direct laborhourProduct testing,tableNumber of customer ordersNumber of testing hours$ per customer orderSellingNumber of sales calls,table$ per testing hour$ per sales call
The company's owner wants to know the cost of a customer order requiring direct laborhours, hours of product testing, and sales calls.
Required:
What is the total overhead cost assigned to this order?
tableActivity Cost Pool,ABC CostOrder size,Customer orders,Product testing,SellingTotal overhead cost,
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