Dartmouth Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:

Assume a traditional costing system applies the $39,240 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $13,190
B) $26,050
C) $25,343
D) $13,898

Question

Dartmouth Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:

Assume a traditional costing system applies the $39,240 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the standard model? (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $13,190 
B) $26,050 
C) $25,343 
D) $13,898

Quizplus · Accepted Answer

[$39,240 / (790 + 400)] × 790 = $26,050

Dartmouth Corporation Manufactures Two Models of Motorized Go-Carts, a Standard