Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Standard Deluxe Overhead costs Number of Setups 16 30 $87,400 OA. $93,700 B. $98,400 C. $89,000 OD. $125,000 Number of Components 8 17 $100,000 Number of Direct Labor Hours 255 225 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 costs assigned to the deluxe model?

Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Standard Deluxe Overhead costs Number of Setups 16 30 $87,400 OA. $93,700 B. $98,400 C. $89,000 OD. $125,000 Number of Components 8 17 $100,000 Number of Direct Labor Hours 255 225 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 costs assigned to the deluxe model?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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naion manufactures two models of office chairs, 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 16 Standard 265 Deluxe 34 14 245 Overhead costs $50,000 $58.900 Nrter 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 costs assigned to the standard modela OA $54,600 OB $77 400 OC. S54,450 O0 $31.500 O Time Remaining: 02:58:03 Next