Question
Ignore any calculations from prior questions. Information pertaining to Radakovich Corporations manufacturing overhead for 2021 is given below. Radakovich uses an actual activity-based costing (ABC)
Ignore any calculations from prior questions. Information pertaining to Radakovich Corporations manufacturing overhead for 2021 is given below. Radakovich uses an actual activity-based costing (ABC) system to assign manufacturing overhead to products. Among its products the company made 5,200 units of product D130 in 2021. The manufacture of this product required a total of 300 machine-hours, 15,000 parts, and 53 inspection-hours. This product's direct materials cost averaged $15.00 per unit and its direct labor cost was $20.00 per unit.
Activity | Activity Rate | Cost Driver |
Assembly | $25.50 | number of machine hours |
Material Handling | $1.50 | number of parts |
Inspection | $80.00 | number of inspection-hours |
Activity Rates are quoted per unit of cost driver activity. Calculate the total manufacturing overhead costs assigned to product D130 for 2021. (Round to the nearest $1.00)
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