Question 2

1. Bush Corp. manufactures two models of pens, a standard and a deluxe model. Three activities have been identified as cost drivers and the related overhead costs ($60,000) pooled together to arrive at the following information:

Product	Number of Setups	Number of Components	Number of DLH (Direct labour Hours)
Standard	22	8	375
Deluxe	28	12	225
Costs per pool	$15,000	$36,000	$9,000

What is the total amount of overhead costs assigned to the deluxe model assuming activity-based costing is used?

A) 26,625

B) 33,375

C) 37,500

D) 22,500