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James, Inc. is considering implementing ABC costing to allocate its overhead costs. The team has identified the following production activities that generate manufacturing overhead costs:
James, Inc. is considering implementing ABC costing to allocate its overhead costs. The team has identified the following production activities that generate manufacturing overhead costs: Cost Pool Material Handling Estimated Cost $168,000 Estimated Activity 650 Cost Driver Number of material orders Machine hours Packaging hours Machine Processing $576,000 Packaging $94.000 Total Overhead Cost $898.000 43,600 10,300 During the year, the actual activity incurred was as follows: Medium tv's: 324 materials orders, 18,900 machine hours, and 3,860 packaging hours Large tv's: 304 material orders, 25,600 machine hours, and 7,020 packaging hours Using ABC, what is the total cost of producing the medium and large tv's
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