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Approximately Relevant ABC

Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year:

Activity Expected Cost Activity Driver Activity Capacity

Setting up equipment $$129,000$ Number of setups $120$

Ordering materials $14,400$ Number of orders $600$

Machining $108,500$ Machine hours $10,850$

Receiving $20,700$ Receiving hours $1,035$

Silven produces two models of cell phones with the following expected activity demands:

Model X Model Y

Units completed $4,6009,200$

Number of setups $8040$

Number of orders $200400$

Machine hours $6,2004,650$

Receiving hours $345690$

Required:

$1.$ Determine the total overhead assigned to each product using the four activity drivers