Dartmouth Corporation manufactures two models of office chairs,a standard and a deluxe model.The following activity and cost information has been compiled:

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 deluxe model?
A)$31,828
B)$67,441
C)$35,613
D)$78,400

Question

Dartmouth Corporation manufactures two models of office chairs,a standard and a deluxe model.The following activity and cost information has been compiled:

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 deluxe model?
A)$31,828 
B)$67,441 
C)$35,613 
D)$78,400

Quizplus · Accepted Answer

The total amount of overhead costs = [($82,800 + $74,000)÷ (265 + 200)] × 200 = $67,441

Dartmouth Corporation Manufactures Two Models of Office Chairs,a Standard and a Deluxe