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Rachel's Pet Supply Corporation manufactures two models of grooming stations, a standard and a deluxe...

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Accounting

Rachel's Pet Supply Corporation manufactures two models of grooming stations, a standard and a deluxe model. The following activity and cost information has been compiled:

Activity

Overhead cost

Cost driver

Standard

Deluxe

Setup

$40,000

# of setup

3 setups

7 setups

Inspection

$120,000

# of inspection

30 inspection

50 inspection

Total manufacturing overhead

$160,000

Product

Direct Labor Hours

Standard

650

Deluxe

150

Assume an activity-based costing system is used and that the number of setups and the number of inspections are identified as the activity-cost drivers for overhead. What is the total amount of overhead costs assigned to the standard model?

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