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Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools
Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools are given below: Activities: Total Cost Total Cost Driver Volume Unit Level $35,960 5,800 labor hours Batch Level $13,052 260 set ups Product Level $3,988 % of use Facility Level $45,600 38,000 units Production of 12,000 units of a hand-held tiller required 480 labor hours, 27 setups, and consumed 40% of the product sustaining activities. Assuming the company uses activity-based costing, how much total overhead will be allocated to this tool? (Do not round intermediate calculations. Round final answer to the nearest whole dollar.) Multiple Choice $15,049 $20,327 $18,410 O $12,000
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