ony\'s Skate Corporation manufactures two models of skate boards a standard and

Question

ony's Skate Corporation manufactures two models of skate boards a standard and a deluve model The following actvty and cost inftrmation has been complied Nurteroft? Number of. Number of Direct Labor Seturs Components Hours 10 15 Product Standard 20 30 375 225 Deluxe Overhead costs $50,000 $70,000 Number of setups and number of components are identifed as activity-cost divers for overhead costs Assuming an actvity-based costing system is used, what is the total amount of overhead costs assigned to the standard model? O A $48,000 OB. S20.000 OC.$29,000

Explanation / Answer

Calculate total overhead cost assigned to standard product :

So answer is a) $48000

Standard product Setup cost (50000/50*20) 20000 Other cost (70000/25*10) 28000 Total overhead cost 48000

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