Knowledge Check 01

Activity Cost Pool	Total Cost			Total Activity		Activity Rate
Machine setups	$	20,000		200	setups	$	100	per setup
Special processing	$	150,000		10,000	MHs	$	15	per machine-hour
General factory	$	200,000		20,000	direct labour-hours	$	10	per direct labour-hour
Total overhead costs	$	370,000

What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor-hours?

$10,000

$1,000

$110,000

$100,000