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:

Assume a traditional costing system applies the $37,960 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the deluxe model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $14,109
B) $23,851
C) $23,294
D) $14,666

Question

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:

Assume a traditional costing system applies the $37,960 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the deluxe model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $14,109 
B) $23,851 
C) $23,294 
D) $14,666

Quizplus · Accepted Answer

[$37,960 / (710 + 420)] × 420 = $14,109

North Street Corporation Manufactures Two Models of Motorized Go-Carts, a Standard