Comfort 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 standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $62,950
B) $54,151
C) $71,749
D) $36,929

Question

Comfort 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 standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $62,950 
B) $54,151 
C) $71,749 
D) $36,929

Quizplus · Accepted Answer

Total amount of overhead costs = [($61,100 + $64,800) ÷ (265 + 200)] × 265 = $71,749

Comfort Corporation Manufactures Two Models of Office Chairs, a Standard