Question
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
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.
Direct LaborMachine Use HoursDepartment 1$18,8002,000Department 213,2001,200Totals$32,0003,200Factory overhead costsRent and utilities$12,200Indirect labor5,400General office expense4,000DepreciationEquipment3,000Supplies2,600Total factory overhead$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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