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Richmond Tools produces a variety of scissors and other cutting instruments at its Kentucky manufacturing plant. The plant is highly automated and uses an activity-based
Richmond Tools produces a variety of scissors and other cutting instruments at its Kentucky manufacturing plant. The plant is highly automated and uses an activity-based costing system to allocate overhead costs to its various product lines. The company expects to produce 33,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: PRODUCT ACTIVITIES: UNIT LEVEL BATCH LEVEL FACILITY LEVEL Cost $40,000 Cost Driver 4,000 labor hrs LEVEL $19,000 % of use $396,000 33,000 units 150 set ups Production of 2,000 units of a pipe-cutting tool required 300 labor hours 10 setups, and consumed 30% of the product sustaining activities, and resulted in an overhead allocation of $34,900. What amount of batch-level overhead cost was expected during the period? (Do not round intermediate calculations.)
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