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Fey Corporation manufactures two models of office chairs, a standard and a deluxe X model. The following activity and cost information has been compiled: Product

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Fey Corporation manufactures two models of office chairs, a standard and a deluxe X model. The following activity and cost information has been compiled: Product #of Setups #of Components #of Direct Labor Hours Standard 22 8 375 Deluxe 28 12 225 Overhead $40,000 $80,000 Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the deluxe model? Goldfarb's Book and Music Store has two service departments, SI (Warehouse) and S2 (Data Center) and two production departments, P1 (Music) and P2 (Books). Si costs are allocated on the basis of budgeted warehouse-hours, and S2 costs are on the number of computer log-on hours. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Service departments Production departments S1 S2 PIP2 Budgeted costs $350,000 $150,000 $125,000 $150,000 Budgeted warehouse-hours NA 500 1,000 1,500 Number of computer hours 200 NA 800 1,000 Using the direct method, what amount of S1 costs will be allocated to P2? (Cull

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