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Oriole, Corp. manufactures balloons that it then packages and sells throughout the country. Oriole would like to have a better understanding of its overall
Oriole, Corp. manufactures balloons that it then packages and sells throughout the country. Oriole would like to have a better understanding of its overall budgets, and has decided to implement the use of Activity-Based Costing (ABC). It has decided upon four unique key activities of which to assign activity-based rates to the following Manufacturing Overhead (MOH) costs: quality inspection $39000 (2600 inspection hours); maintenance, $17100 (1900 maintenance hours); moving and sorting, $13600 (680 pounds of materials); and factory supervisor wages, $60000 (4700 supervisor hours). Oriole will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources: Red balloons: 1400 inspection hours, 1450 maintenance hours, 410 pounds of materials, and 2480 supervisor hours Blue balloons: 1200 inspection hours, 450 maintenance hours, 270 pounds of materials, 2220 supervisor hours How much of the Moving and Sorting MOH will be allocated to the blue balloons?
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