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Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver A $ 52,000 Number of setups B $ 78,000 Number of components Standard Deluxe Number of setups 12 28 Number of components 8 12 Number of direct labor hours 255 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600 Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver $ 52,000 Number of setups $ 78,000 Number of components A B Standard Deluxe Number of setups Number of components Number of direct labor hours 255 12 8 28 12 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600

Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver A $ 52,000 Number of setups B $ 78,000 Number of components Standard Deluxe Number of setups 12 28 Number of components 8 12 Number of direct labor hours 255 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600 Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver $ 52,000 Number of setups $ 78,000 Number of components A B Standard Deluxe Number of setups Number of components Number of direct labor hours 255 12 8 28 12 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600

Cornerstones of Cost Management (Cornerstones Series)
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 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver A $ 52,000 Number of setups B $ 78,000 Number of components Standard Deluxe Number of setups 12 28 Number of components 8 12 Number of direct labor hours 255 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600 Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver $ 52,000 Number of setups $ 78,000 Number of components A B Standard Deluxe Number of setups Number of components Number of direct labor hours 255 12 8 28 12 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600
Transcribed Image Text:Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver A $ 52,000 Number of setups B $ 78,000 Number of components Standard Deluxe Number of setups 12 28 Number of components 8 12 Number of direct labor hours 255 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600 Office Chair Corporation manufactures two types of office chairs, a Standard model and a Deluxe model. The firm uses an activity- based costing system with two activities, A and B, and the activity-cost drivers are the number of setups and number of components, respectively. The following cost and activity information has been compiled: Activity Activity Cost Activity Cost Driver $ 52,000 Number of setups $ 78,000 Number of components A B Standard Deluxe Number of setups Number of components Number of direct labor hours 255 12 8 28 12 245 Compute the total amount of overhead costs allocated to the Standard model. Group of answer choices $47,400 $49,200 $46,800 $45,600
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