Answer the following questions using the information below:
Fey 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 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
C)$75,000
D)$45,000

Question

Answer the following questions using the information below:
Fey 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 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 
C)$75,000 
D)$45,000

Quizplus · Accepted Answer

The total overhead costs assigned to the deluxe model are calculated by allocating costs based on the identified activity-cost drivers: number of setups and number of components. The correct allocation results in $70,400.

Answer the Following Questions Using the Information Below