Wilco currently uses a traditional costing system to apply overhead to their products on the basis of direct labor hours (DLH). Mike Norvell, Wilco's Chief Accounting and Finance Officer, is considering a switch to an activity-based costing system (ABC) that will use three cost pools - Assembly (with DLH as the cost driver), Setup (with number of setups as the cost driver), and Material Handling (with number of parts as the cost driver). Data on the three cost pools follows: Type Assembly Setup Material Handling O $124,000 $300,000 O $120,000 Pool Cost O $176,000 $60,000 $140,000 $100,000 Product Seminole If Wilco switches to an ABC system, how much overhead will be allocated to Seminole? 400 DLH 25 Setups 1,300 Parts Product Osceola 600 DLH 75 Setups 700 Parts

Wilco currently uses a traditional costing system to apply overhead to their products on the basis of direct labor hours (DLH). Mike Norvell, Wilco's Chief Accounting and Finance Officer, is considering a switch to an activity-based costing system (ABC) that will use three cost pools - Assembly (with DLH as the cost driver). Setup (with number of setups as the cost driver), and Material Handling (with number of parts as the cost driver). Data on the three cost pools follows: If Wilco switches to an ABC system, how much overhead will be allocated to Seminole? $124,000 $300,000 $120,000 $176,000