Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications

Question:

Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:

Activity Cost Pool Activity Measure Activity Rate $16.85 per direct labor-hour $320.00 per customer order $89.00 per testing hour $1,090.00 per sales call Order size Number of direct labor-hours Customer orders Number of customer orders Product testing Number of testing hours Selling.... Number of sales calls

The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 200 direct labor-hours, 4 hours of product testing, and 2 sales calls.


Required:

What is the total overhead cost assigned to the order for heavy-duty trailer axles?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781260247787

17th Edition

Authors: Ray Garrison, Eric Noreen, Peter Brewer

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