Pro Tool Company expects to produce 24,000 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 800 labor hours, 12 setups, and consumed 30% 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. $18,400

B. $10,000

C. $100,000

D. $40,000

Transcribed Image Text:

ACTIVITIES: Cost Cost Driver BATCH PRODUCT PRODUCT UNIT LEVEL LEVEL $50,000 $20,000 4,000 labor hrs 100 set ups LEVEL $10,000 % of use FACILITY LEVEL $120,000 24,000 units ACTIVITIES: Cost Cost Driver BATCH PRODUCT PRODUCT UNIT LEVEL LEVEL $50,000 $20,000 4,000 labor hrs 100 set ups LEVEL $10,000 % of use FACILITY LEVEL $120,000 24,000 units

Answer rating: 100% (QA)

B 10000 Allocation ba... View the full answer