Question 38 (2 points) Use the following information to answer the next two questions: Custom Furniture Co. produces coffee tables, cabinets, and shelving units. The job- costing system they use was designed using an activity-based approach. There are two direct-cost categories (direct materials and direct labour) and two indirect cost pools. These two cost pools represent two activity areas of work at the shop. Cost Diver used for Activity Area Cost-Allocation Rate Allocation Machine-specific overhead Kilowatt hours $0.75 per kilowatt hour costs Assembly and installation Direct labour hours $20 per direct labour hour In February, Custom Furniture Co. produced and sold ten sets of furniture. A set consists of one coffee table, two cabinets, and three shelving units. The direct labour rate is $23.00 per hour. Cost data for coffee tables, cabinets, and shelving units are as follows: Number of kilowatt hours Direct labour hours per unit per unit Units Direct material produced costs per unit Coffee tables 10 $250 Cabinets 20 $150 Shelving units 30 $100 What is the total cost of two sets of furniture? 200 4 100 3 100 2 $1,690 Less than $1,690 $2,063 $4,126 More than $4,126 Question 39 (2 points) What are the total overhead costs incurred by Custom Furniture Co. in February? $12,130 $8,450 Less than $3,500 More than $12,130 $3,500