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Sanford Tools produces a variety of scissors and other cutting Instruments at its Birmingham manufacturing plant. The plant is highly automated and uses an activity-based
Sanford Tools produces a variety of scissors and other cutting Instruments at its Birmingham 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 37,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: BATCH LEVEL ACTIVITIES: Cost Cost Driver UNIT LEVEL $60,000 5,000 labor hrs PRODUCT LEVEL FACILITY LEVEL $21,000 $222,000 % of use 37,000 units 200 set ups Production of 2,000 units of a pipe-cutting tool required 600 labor hours 12 setups, and consumed 30% of the product sustaining activities, and resulted in an overhead allocation of $27,720. What amount of batch-level overhead cost was expected during the period? (Do not round Intermediate calculations.) Multiple Choice $2.220 $37.000 $25.500 O None of these answers is correct
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