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Dis-knee, a manufacturing company, uses activity-based costing to allocate overhead costs. The company has identified...

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Accounting

Dis-knee, a manufacturing company, uses activity-based costing to allocate overhead costs. The company has identified two activities, Handling and Packaging, with estimated overhead costs of $100,000 and $150,000, respectively. Handling uses direct labor hours as a cost driver, while Packaging uses machine hours as a cost driver. The estimated total direct labor hours for Handling is 5,000 hours, and the estimated total machine hours for Packaging is 10,000 hours. The company expects to product 2,000 units of Leggo Figurines, which requires 4 direct labor hours and 8 machine hours per unit. Calculate the overhead cost per Leggo Figurine using activity-based costing.
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