Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which uses an activity-based costing system, has identified the number of setups and number of production runs as cost drivers for overhead. The following activity and cost data were from March. Number of Set-Ups Number of Production Runs Number of Machine Hours 20 6 Standard Deluxe 5 4 Overhead costs $ 20,000 30,000 10,000 $ 30,000 How much overhead will be assigned to the deluxe model?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gate Industries manufactures a standard model and a
deluxe model of skateboard. The company, which uses
an activity-based costing system, has identified the
number of setups and number of production runs as cost
drivers for overhead. The following activity and cost data
were from March.
Number of Set-Ups Number of Production
Runs Number of Machine Hours
20
6
Standard
Deluxe
5
4
Overhead costs $20,000
30,000
10,000
$ 30,000
How much overhead will be assigned to the deluxe
model?
Transcribed Image Text:Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which uses an activity-based costing system, has identified the number of setups and number of production runs as cost drivers for overhead. The following activity and cost data were from March. Number of Set-Ups Number of Production Runs Number of Machine Hours 20 6 Standard Deluxe 5 4 Overhead costs $20,000 30,000 10,000 $ 30,000 How much overhead will be assigned to the deluxe model?
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