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VCU Company produces several lines of storage boxes. The plant is highly automated and uses an activity- based costing system to allocate overhead costs to

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VCU Company produces several lines of storage boxes. The plant 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 72,000 units. The costs and cost drivers associated with four activity cost pools are given below: Production of 40,000 units of its popular over-stuffed box required 6,000 labor hours, 150 setups, and consumed one-third of the product sustaining activities. What amount of batch-level costs will be allocated to the product? ACTIVITIES: UNIT Cost Cost Driver 12,000 labor hrs 200 set ups BATCH PRODUCT FACILITY LEVEL LEVEL LEVELLEVEL $30,000 $8,000 $15,000 $36,000 % of use 120,000 units a. $22,500 b.$6,000 C. $12,000 d.$ 5,000

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