Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The...
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Accounting
Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:
Number of
Number of
Number of
Product
Setups
Components
Direct Labor Hours
Standard
18
9
275
Deluxe
32
14
215
Overhead costs
$75,000
$87,400
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 costs assigned to the standard model?
A. $81,200
B. $61,200
C. $101,200
D. $81,900
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