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Attrax Corporation makes two products: titanium rims and posts. Data regarding the two products follow:
| | Direct Labour- Hours per Unit | Annual Production |
| Rims | 0.71 | 25,000 | units |
| Posts | 0.29 | 92,000 | units |
| |
Additional information about the company follows:
- Rims require $19 in direct materials per unit, and posts require $13.
- The direct labour wage rate is $22 per hour.
- Rims are more complex to manufacture than posts, and they require special equipment.
- The ABC system has the following activity cost pools:
| | Activity Measure | Activity | |
| | | |
| Activity Cost Pool | Estimated Overhead Cost | Rims | Posts | Total |
| Machine setups | Number of setups | $24,400 | 110 | 90 | 200 |
| Special processing | Machine-hours | $206,800 | 4,400 | 0 | 4,400 |
| General factory | Direct labour-hours | $562,800 | 13,200 | 27,000 | 40,200 |
What is the total overhead cost for Posts?
Select one:
a. $385,980
b. $388,000
c. $388,980
d. $380,980
Answer & Explanation
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