Comfort Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and
Posted: Sat Feb 19, 2022 2:34 pm
Comfort Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Product Number of Number of Number of Setups components direct labor hours Standard 12 8 255 Deluxe 28 12 245 Overhead $52,000 $78,000 costs Assume a traditional costing system applies the overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? ✓ a. $65,700 b. $66,300 C. $66,700 d. $63,600 The correct answer is: $66,300