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Exercise 7-9 Second-Stage Allocation to an Order [LO7-4)] Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications

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Exercise 7-9 Second-Stage Allocation to an Order [LO7-4)] 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 intermal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Customer orders Product testing Selling $ 17.10 per direct labor-hour Number of direct labor-hours Number of customer orders Number of testing hours Number of sales calls $368.00 per customer order $ 80.00 per testing hour $1,488.00 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 120 direct labor-hours, 19 hours of product testing and 4 sales calls. Required: Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order? vity Cost Pool ABC Cost Order size Customer orders Product testing Selling Total overhead cost esc F1 F2 F3 F4 F5 #6

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