- 11 A Corporation Manufactures Two Models Of Office Chairs A Standard And A Deluxe Model The Following Activity And Co 1 (71.76 KiB) Viewed 45 times
11. A 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 Product Standard Number of Components Number of Direct Labor Hours 22 8 375 Deluxe 28 12 225 Overhead costs $40,000 $80,000 Required 1) Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? A) $49,600 B) $70,400. C) $75,000. 120000/600-200 200x375-75000 D) $45,000 2) Assume a traditional costing system applies the $120,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the deluxe model? A) $49,600 B) $70,400. 200x225=45000 C) $75,000 D) $45,000 3) 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 standard model? A) $49,600 B) $70,400. 40000/50-800 80000/20-4000 800x22+4000x8=49600 C) $75,000 D) $45,000 4) 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? A) $49,600 B) $70,400. 800x28+4000x12= 70400 C) $75,000 D) $45,000