Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered: The number of components and number of setups are chosen as activity-cost drivers for overhead. Assuming an ABC costing system is being used, what is the total overhead cost assigned to the Base model?
A) $15,450
B) $21,375
C) $13,500
D) $17,625

Question

Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered:  The number of components and number of setups are chosen as activity-cost drivers for overhead. Assuming an ABC costing system is being used, what is the total overhead cost assigned to the Base model?
A) $15,450 
B) $21,375 
C) $13,500 
D) $17,625

Quizplus · Accepted Answer

The Answer of Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered:  The number of components and number of setups are chosen as activity-cost drivers for overhead. Assuming an ABC costing system is being used, what is the total overhead cost assigned to the Base model?
A) $15,450 
B) $21,375 
C) $13,500 
D) $17,625

Cleveland Choppers Manufactures Two Types of Motorcycles, a Base and a Loaded