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 Loaded model?
A) $31,875
B) $36,000
C) $28,125
D) $34,050

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 Loaded model?
A) $31,875 
B) $36,000 
C) $28,125 
D) $34,050

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 Loaded model?
A) $31,875 
B) $36,000 
C) $28,125 
D) $34,050

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