Olympia & Valhalla, Inc. makes two styles of trophies, basic and operates at capacity. O&V does large custom orders and budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, setup and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50.

The controller has asked you to compare plant-wide, department and activity based cost allocation

Budgeted Information for the Year Ended June 30, 2020

Forming Department	Basic	Deluxe	Total
DM	$60,000	$35,000	$95,000
DL	30,000	20,000	50,000
Overhead costs
Setup			48,000
General Overhead - Forming			32,000
Assembly Department	Basic	Deluxe	Total
DM	$5,000	$10,000	$15,000
DL	15,000	25,000	40,000
Overhead costs
General overhead - Ass'y			40,000

b. Calculate the budgeted total cost of basic trophies based on departmental overhead rates, where department overhead costs are allocated based on Direct Materials Costs in the Forming Department and Direct Labor Costs in the Assembly Department.