Rosebud Inc. is a retail company that specializes in the sale of wooden sleds. The accountants for the company are in the process of identifying appropriate cost drivers for the organization. Their current focus is upon ensuring that each activity and its related cost driver are placed at the appropriate level of the cost hierarchy.
The most recent production run resulted in the creation of 450 wooden sleds and tallied the following totals: 3,000 square feet; 1,420 supervisor hours; and 1,997 inspection hours. How much facility-level cost should be allocated to the production department of Rosebud?

Question

Rosebud Inc. is a retail company that specializes in the sale of wooden sleds. The accountants for the company are in the process of identifying appropriate cost drivers for the organization. Their current focus is upon ensuring that each activity and its related cost driver are placed at the appropriate level of the cost hierarchy. 
  The most recent production run resulted in the creation of 450 wooden sleds and tallied the following totals: 3,000 square feet; 1,420 supervisor hours; and 1,997 inspection hours. How much facility-level cost should be allocated to the production department of Rosebud?

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The Answer of Rosebud Inc. is a retail company that specializes in the sale of wooden sleds. The accountants for the company are in the process of identifying appropriate cost drivers for the organization. Their current focus is upon ensuring that each activity and its related cost driver are placed at the appropriate level of the cost hierarchy. 
  The most recent production run resulted in the creation of 450 wooden sleds and tallied the following totals: 3,000 square feet; 1,420 supervisor hours; and 1,997 inspection hours. How much facility-level cost should be allocated to the production department of Rosebud?