Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model, Number of setups and number of components are identified as activity-cost drivers for overhead. The standard model requires 19 setups and 9 components. The standard model's overhead costs are $50,000. The deluxe model requires 31 setups and 18 components. The deluxe model's overhead costs are $102,600. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?

Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model, Number of setups and number of components are identified as activity-cost drivers for overhead. The standard model requires 19 setups and 9 components. The standard model's overhead costs are $50,000. The deluxe model requires 31 setups and 18 components. The deluxe model's overhead costs are $102,600. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
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