Trintal Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:
$\begin{array}{lrrr}
&\text { Number of }&\text { Number of }&\text { Number of } \
\text { Product }&\text { Setups }&\text { Components }&\text { Direct Labor Hours }\
\text { Standard } & 15 & 10 & 750 \
\text { Del uxe } & 35 & 15 & 500 \
\text { Overhead costs } & \$ 16,500 & \$ 23,500
\end{array}$
-Number of setups and number of components are identified as activity-cost drivers for overhead.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the deluxe model?
A) $25,650
B) $24,350
C) $26,550
D) $25,350

Question

Trintal Corporation manufactures two models of motorized go-carts, a standard and a deluxe model. The following activity and cost information has been compiled:
 $\begin{array}{lrrr}
&\text { Number of }&\text { Number of }&\text { Number of } \
\text { Product }&\text { Setups }&\text { Components }&\text { Direct Labor Hours }\
\text { Standard } & 15 & 10 & 750 \
\text { Del uxe } & 35 & 15 & 500 \
\text { Overhead costs } & \$ 16,500 & \$ 23,500 
\end{array}$
-Number of setups and number of components are identified as activity-cost drivers for overhead.Assuming an activity-based costing system is used,what is the total amount of overhead cost assigned to the deluxe model?
A) $25,650
B) $24,350
C) $26,550
D) $25,350

Quizplus · Accepted Answer

The deluxe model has 35 setups and 15 components. The overhead cost assigned to the deluxe model is:Setup cost = 35 setups x $16,500 / 45 setups = $12,000Component cost = 15 components x $23,500 / 25 components = $13,650Total overhead cost = $12,000 + $13,650 = $25,650

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