1. CraftMade Company expects to produce 22,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below:

Production of 1,000 units of an auto towing tool required 600 labor hours, 20 setups, and consumed 25 % of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead on the basis of a single overhead allocation rate based on direct labor hours?
A. $8,000
B. $51,800
C. $39,000
D. $12,850

Transcribed Image Text:

Unit Level ACTIVITIES: Batch Level Product Level Facility Level $29,000 200 setups S39,000 3,000 labor Hrs. $15,000 $179,000 S22,000. Cost % Of use Cost Driver