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:

Number of setups and number of components are identified as activity-cost drivers for overhead.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the standard model? (Do not round interim calculations.Round the final answer to the nearest whole dollar. )
A)$18,475
B)$11,500
C)$19,750
D)$25,450

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:

Number of setups and number of components are identified as activity-cost drivers for overhead.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the standard model? (Do not round interim calculations.Round the final answer to the nearest whole dollar. )
A)$18,475 
B)$11,500 
C)$19,750 
D)$25,450

Quizplus · Accepted Answer

Setups: 17,150 ÷ (20 + 29)= $350
Components: $19,800 ÷ (5 + 17)= $900
Total amount of overhead cost = ($350 × 20)+ ($900 × 5)= $11,500

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