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Xavier Company produces several product lines of laundry hampers. The factory is highly automated and uses an activity-based costing system to allocate overhead costs
Xavier Company produces several product 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 75,000 units (all product lines). The overhead costs and cost drivers associated with four activity cost pools are given below: ACTIVITIES: UNIT LEVEL BATCH LEVEL PRODUCT FACILITY LEVEL LEVEL Company-wide Overhead $60,000 $8,000 $15,000 $36,000 Cost Cost driver 12,000 200 set 75,000 % of use labor hrs ups units One of Xavier's products is a popular foldable hamper. During the period, they produced 20,000 units of this hamper which required 4,000 labor hours and 75 setups and consumed one-third of the product sustaining activities. What is the amount of company-wide overhead cost that should be allocated to the foldable hamper product? Show your work.
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