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Valpar Company produces four types of laundry hampers and uses ABC to allocate overhead costs to products. During the upcoming period the company expects to

Valpar Company produces four types of laundry hampers and uses ABC to allocate overhead costs to products. During the upcoming period the company expects to produce 72,000 total units with the following costs and cost drivers:
Activities
Unit-Level
Batch-Level
Product-Level
Facility-Level
Cost
$20,000
$8,000
$15,000
$36,000
Cost Driver
4,000 labor hours
200 set-ups
% of use
72,000 units
Production of 20,000 units of its popular foldable hamper required 1,200 labor hours, 50 setups, and consumed 20% of the product-level cost pool. What amount of product-level costs will be allocated to each foldable hamper?
Multiple choice question.
$1.50

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