Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of
1 answer:
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Answer:
d. $520,000
Explanation:
Provided information,
Activities Cost Cost drivers
Tooling $500,000 25 setups
Processing $2,000,000 20,000 direct labors
Resources $800,000 40,000 square feet
Rate per activity
Tooling =
Processing =
Resources =
Information for Product D
3 setups = 3 $20,000 = $60,000
3,000 direct labor hours = 3,000 $100 = $300,000
8,000 square feet = 8,000 $20 = $160,000
Total overhead cost assigned = $60,000 + $300,000 + $160,000 = $520,000