Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

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 deluxe model?
A) $31,828
B) $67,441
C) $35,613
D) $78,400

Question

Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

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 deluxe model?
A) $31,828 
B) $67,441 
C) $35,613 
D) $78,400

Quizplus · Accepted Answer

The total amount of overhead costs = [($82,800 + $74,000) ÷ (265 + 200)] × 200 = $67,441

Dartmouth Corporation Manufactures Two Models of Office Chairs, a Standard