Comfort 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 Number of Product Setups Components Direct Labor Hours Standard 19 265 Deluxe 27 15 220 Overhead costs $69,000 $60,000 Assume a traditional costing system applies the overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.) А. $32,784 B. $64,500 С. $58,515 D. $70,485

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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Comfort 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
Direct Labor Hours
Number of
Product
Setups
Components
Standard
19
5
265
Deluxe
27
15
220
Overhead costs
$69,000
$60,000
Assume a traditional costing system applies the overhead costs based on direct labor hours. What is the total amount of
overhead costs assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest
whole dollar.)
O A. $32,784
O B. $64,500
O C. $58,515
O D. $70,485
Transcribed Image Text:Comfort 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 Direct Labor Hours Number of Product Setups Components Standard 19 5 265 Deluxe 27 15 220 Overhead costs $69,000 $60,000 Assume a traditional costing system applies the overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.) O A. $32,784 O B. $64,500 O C. $58,515 O D. $70,485
Jason Novelty Company produces a specialty item. Management has provided the following information:
Actual sales
130,000 unit
Budgeted production
102,000 unit
Selling price
$43 per unit
Direct material costs
$10 per unit
Variable manufacturing costs
$3 per unit
$6 per unit
$5 per unit
Variable administrative costs
Fixed manufacturing overhead
What is the total throughput contribution?
O A. $4,290,000
O B. $3,366,000
OC. $2,470,000
O D. $3,120,000
Transcribed Image Text:Jason Novelty Company produces a specialty item. Management has provided the following information: Actual sales 130,000 unit Budgeted production 102,000 unit Selling price $43 per unit Direct material costs $10 per unit Variable manufacturing costs $3 per unit $6 per unit $5 per unit Variable administrative costs Fixed manufacturing overhead What is the total throughput contribution? O A. $4,290,000 O B. $3,366,000 OC. $2,470,000 O D. $3,120,000
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