FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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North Street Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled
Number of
Number of
Number of
Components
Setups
16
26
$15,120
Product
Standard
Deluxe
Overhead costs
7
OA. $16,150
O.B. $27,790
OC. $24,100.
OD. $20,170
19
$25,220
Direct Labor Hours
780
400
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 cost assigned to the deluxe model?
erre
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Transcribed Image Text:North Street Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled Number of Number of Number of Components Setups 16 26 $15,120 Product Standard Deluxe Overhead costs 7 OA. $16,150 O.B. $27,790 OC. $24,100. OD. $20,170 19 $25,220 Direct Labor Hours 780 400 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 cost assigned to the deluxe model? erre
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