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The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and supplies
The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use. Department 1 Department 2 Totals Factory overhead costs. Rent and utilities Indirect labor General office expense Depreciation-Equipment Supplies Total factory overhead Direct Labor Machine Use Hours $18,000 1,920 14,000 1,280 $32,000 3,200 $ 11,400 5,200 4,400 3,400 2,800 $27,200 Compute the total amount of overhead cost allocated to Department 1 using activity-based costing. (Round activity rate answers to 2 decimal places.)
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