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Hope Corporation manufactures two models of motorized go - carts, a standard and a deluxe model. The following activity and cost information has been compiled:
Hope Corporation manufactures two models of motorized gocarts, a standard and a deluxe model. The following activity and cost information has been compiled:
Activity Overhead cost Cost driver Standard Deluxe
Setup $ # of setup setups setups
Inspection $ # of inspection inspection inspection
Total manufacturing overhead $
Product Direct Labor Hours
Standard
Deluxe
Number of setups and number of inspections are identified as activitycost drivers for overhead. Assuming an activitybased costing system is used, what is the total amount of overhead cost assigned to the deluxe model?
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