Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following...

 

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Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Components Direct Labor Hours 375 225 Product Standard Deluxe Overhead costs $35.200 $22.500 Number of Setups $37,500 22 28 $20,000 Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? $24,800 8 12 $40,000 Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled: Number of Number of Components Direct Labor Hours 375 225 Product Standard Deluxe Overhead costs $35.200 $22.500 Number of Setups $37,500 22 28 $20,000 Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? $24,800 8 12 $40,000

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