Craft Made Company expects to produce 15,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: ACTIVITIES UNIT BATCH PRODUCT FACILITY LEVEL LEVEL LEVEL LEVEL Cost $26,000 $36,000 $8,000 $135,000 Cost Driver 2,000 labor hrs ups 180 set 15,000 % of use units Production of 1,000 units of an auto towing tool required 400 labor hours, 11 setups, and consumed 35% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?

Craft Made Company expects to produce 15,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below: ACTIVITIES UNIT BATCH PRODUCT FACILITY LEVEL LEVEL LEVEL LEVEL Cost $26,000 $36,000 $8,000 $135,000 Cost Driver 2,000 labor hrs ups 180 set 15,000 % of use units Production of 1,000 units of an auto towing tool required 400 labor hours, 11 setups, and consumed 35% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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