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Use the following information to answer questions the next two questions: Border Corporation identified the following activities related to annual expected overhead costs at the
Use the following information to answer questions the next two questions: Border Corporation identified the following activities related to annual expected overhead costs at the beginning of 2018. Expected Expected Expected Expected Overhead Activity Cost Activity Driver Quantity Moving Materials $ 16,000 Number of moves 500 Inspections $ 22,400 Number of inspection hours 350 Ordering $ 13,900 Number of orders 2,780 Maintenance $ 161,200 Machine hours 6,200 The company's normal activity is 5,000 direct labor hours per year. During January 2018, the company reported the following for two of its products: Product A Product B Direct materials $2,575 $2,810 Direct labor $2,100 $3,300 Units completed 40 50 Direct labor hours 80 120 Number of material moves 11 5 Number of inspection hours 8 Number of orders 50 20 Machine hours 70 90 50 5. (3 points) If Border Corporation uses direct labor hours in a traditional costing system to assign overhead, what is the total cost of Product A? a. $6,383 b. $7,664 c. $3,416 d. $11,234 e. $8,091 f. $10,297 g $5,622 h. None of the above
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