X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:

Number of Number of Number of

Product Setups Components Direct Labor Hours

Standard 15 10 750

Deluxe 35 15 500

Overhead costs $15,000 $25,000

1) Assume a traditional costing system applies the $40,000 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the standard model?

A) $16,000

B) $24,000

C) $25,000

D) $15,000

2) Assume a traditional costing system applies the $40,000 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the deluxe model?

A) $16,000

B) $24,000

C) $25,000

D) $15,000

3) Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the standard model?

A) $25,500

B) $15,000

C) $14,500

D) $24,000

4) Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead cost assigned to the deluxe model?

A) $25,500

B) $25,000

C) $24,000

D) $12,500