The following is taken from Clausen Companys internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept. 2 using activity-based costing.

	Direct Labor Hours				Machine Hours
Operating Dept. 1		1,170					10,200
Operating Dept. 2		2,730					6,800
Totals		3,900					17,000
Factory overhead costs
Rent and utilities						$	24,400
Indirect labor							20,000
Depreciation - Equipment							17,600
Total factory overhead						$	62,000

Multiple Choice

• $14,000.

• $16,800.

• $31,200.

• $30,800

• $30,200.