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Super Speaker company makes two different grades of speakers for use with mobile devises, a Premium and a Standard. They have decided to implement an

Super Speaker company makes two different grades of speakers for use with mobile devises, a Premium and a Standard. They have decided to implement an ABC system for analyzing the costs of the two different lines. After a cost study, the accounting team at Super Speaker came up with the following information:

Activity

Cost Allocation Base
Setups $52030

Number of Setups

Machine Maintenance $36551 Number of machine hours

Estimated amount of allocation base equaled actual amount during the period.

Standard Premium Total
Direct Labor Hours 1855 2244 4099
Number of Setups 44 56 100
Number of Machine Hours 1741 1130 2871

Required: Compute the amount of indirect cost applied to the Premium speakers.

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