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Q 31 Blossom Corp. manufactures balloons that it then packages and sells throughout the country. Bibssom would like to have a better understanding of its

Q 31

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Blossom Corp. manufactures balloons that it then packages and sells throughout the country. Bibssom 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, $36000 (2400 inspection hours); maintenance $18000 (1900 maintenance hours), moving and sorting, $13200 (670 pounds of materials); and factory supervisor wages, $59100 (4700 supervisor hours). Blossom will be allocating MOH to two different products: red balloons and blue balloons. Each balloon used the following resources: Red balloons: 1400 inspection hours, 1470 maintenance hours, 430 pounds of materials, and 2410 supervisor hours Blue balloons: 1000 inspection hours, 430 maintenance hours, 240 pounds of materials, and 2290 supervisor hours How much of the Quality inspection MOH will be allocated to the red balloons? O $21000.00 O $15000.00 O $25651.00 O $36000.00

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