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Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which...

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Accounting

Gate Industries manufactures a standard model and a deluxe model of skateboard. The company, which uses an activity-based costing system, has identified the number of setups and number of production runs as cost drivers for overhead. The following activity and cost data were from March.

Number of Set-Ups Number of Production Runs Number of Machine Hours Standard 20 6 30,000 Deluxe 5 4 10,000 Overhead costs $ 20,000 $ 30,000

How much overhead will be assigned to the deluxe model?

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