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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
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 Osceola? $180,000$124,000$176,000$300,000
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