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Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which uses a activity-based costing, applies overhead $20,000 of its
Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which uses a activity-based costing, applies overhead $20,000 of its overhead based on number of setups and $30,000 of its overhead based on number of machine hours. The following activity and cost data were from March: Number of Number of Number of Production Machine Set-Ups Runs Hours Standard Deluxe 20 30,000 5 4 10,000 Overhead costs $20,000 $30,000 How much overhead will be assigned to the deluxe model?
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