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Pro Tool Company expects to produce 29,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are
Pro Tool Company expects to produce 29,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: ACTIVITIES: UNIT LEVEL $65,000 5,000 labor hrs BATCH LEVEL $20,000 100 set ups PRODUCT LEVEL $22,000 % of use FACILITY LEVEL $203,000 29,000 units Cost Cost Driver Production of 2,000 units of an auto towing tool required 800 labor hours, 15 setups and consumed 20% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead using a single overhead allocation rate based on direct labor hours? (Do not round intermediate calculations.) Multiple Choice $19,850 O $65,000 $49,600 O O $14.000
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