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Rossi Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools
Rossi 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: | Unit Level | Batch Level | Product Level | Facility Level |
Total Cost | $30,000 | $12,000 | $6,000 | $36,000 |
Total Cost Driver Volume | 5,000 labor hours | 240 set ups | % of use | 36,000 units |
Production of 10,000 units of a hand-held tiller required 500 labor hours, 25 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.)
rev: 11_19_2014_QC_59347
$14,250$16,650$10,000$16,050
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