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Comfort Corporation manufactures two models of office chairs, a standard and a deluxe model. The...

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Accounting

Comfort Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

Activity

Overhead cost

Cost driver

Standard

Deluxe

Setup

$52,000

# of setup

12 setups

28 setups

Inspection

$78,000

# of inspection

8 inspection

12 inspection

Total manufacturing overhead

$130,000

Product

Direct Labor Hours

Standard

255

Deluxe

245

Number of setups and number of inspections are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the deluxe model?

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