Question
Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity-based costing system with two
Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity-based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver A $ 52,000 Number of setups B $ 78,000 Number of components Standard Deluxe Number of setups 12 28 Number of components 8 12 Number of direct labor hours 255 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600
Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity-based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled:
Activity | Activity Cost | Activity Cost Driver |
A | $ 52,000 | Number of setups |
B | $ 78,000 | Number of components |
Standard | Deluxe | |
Number of setups | 12 | 28 |
Number of components | 8 | 12 |
Number of direct labor hours | 255 | 245 |
Compute the total amount of overhead costs allocated to the Standard model.
Group of answer choices
$47,400
$49,200
$46,800
$45,600
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