Q10/Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Product Standard Deluxe Setups B.$70,400 C.$75,000 D.$45,000 22 Number of Number of Components Direct Labor Hours 8 28 Overhead costs $40,000 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? Group of answer choices A. $49,600 375 225 12 $80,000
Q10/Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Product Standard Deluxe Setups B.$70,400 C.$75,000 D.$45,000 22 Number of Number of Components Direct Labor Hours 8 28 Overhead costs $40,000 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? Group of answer choices A. $49,600 375 225 12 $80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Q10/Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost
information has been compiled:
Number of
Setups
Number of
Components
Number of
Direct Labor Hours
Product
Standard
22
Deluxe
28
Overhead costs
$40,000
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?
Group of answer choices
A. $49,600
B.$70,400
C.$75,000
D.$45,000
8
12
$80,000
375
225](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c3e332c-b8c2-4ed0-b345-1626c419d852%2F72767200-6c3f-47ea-b3e2-ff252eb5e5dc%2Fmacr0c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q10/Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost
information has been compiled:
Number of
Setups
Number of
Components
Number of
Direct Labor Hours
Product
Standard
22
Deluxe
28
Overhead costs
$40,000
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?
Group of answer choices
A. $49,600
B.$70,400
C.$75,000
D.$45,000
8
12
$80,000
375
225
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