Accounting, 6e: Spring-2UZU. Chapter 17 - Homework 2.77 points Exercise 17-11 Activity-based costing and overhead cost allocation LO P3 The following is taken from Ronda ce internal records of its factory with two production departments. The cost driver for anver for indirect labor and Supplies is direct Labor costs and the cost driver for the remaining Overhead items is number of hours of machine use. Department 1 Department 2 Direct Labor Machine Use Hours $ 18,800 2,000 13.200 1.200 Totals $ 32,000 3,200 Factory overhead costs Rent and utilities Indirect labor General office expense Depreciation Equipment Supplies $ 12. 200 5,400 4.000 3,000 2,600 Total factory overhead $ 27,200 Compute the total amount of overhead cost allocated to Department 1 using activity-based costing (Round activity rate answers to 2 decimal places.) Estimated Cost driver Activity Rate Cost driver quantity incurred OR Allocated Costs to be allocated Estimated Indirect labor and Supplies Rent, utilities, general office and depreciation References eBook & Resources Worksheet Exercise 17-11 Activity-based costing and overhead cost