Question: Hawk Corp has identified two activities in its activity based costing system: setups and production. The activity overhead rates for these two activities are $280
Hawk Corp has identified two activities in its activity based costing system: setups and production. The activity overhead rates for these two activities are $280 per setup and $1.65 per direct labor hour, respectively. To make product X5, Hawk incurred $725 in direct materials costs, $148 in direct labor costs, and used 6 setups and 20 direct labor hours. The total overhead assigned to product X5 would be:
| $873 | ||
| $2,586 | ||
| $1,713 | ||
| Cannot be determined |
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