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Valpar Company produces several lines of laundry hampers. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its
Valpar Company produces several lines of laundry hampers. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. During the upcoming period, the company expects to produce 78,000 units. The costs and cost drivers associated with four activity cost pools are given below: ACTIVITIES: Cost Cost Driver UNIT LEVEL $36,000 12,000 labor hrs BATCH LEVEL $8,600 260 set ups PRODUCT LEVEL $15,600 % of use FACILITY LEVEL $36,600 78,000 units Production of 46,000 units of its popular foldable hamper required 4,000 labor hours, 156 setups and consumed one-third of the product sustaining activities. What amount of unit-level costs will be allocated to the product? (Do not round intermediate calculations.) Multiple Choice $12,000 $11,500 O O O $4.100 U O $13,000
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