Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used...

90.2K

Verified Solution

Question

Accounting

Durban Metal Products, Limited, of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:
\table[[Activity Cost Pool,Activity Measure,Activity Rate],[Order size,Number of direct labor-hours,$17.20 per direct labor-hour],[Customer orders,Number of customer orders,$351.00 per customer order],[Product testing,Number of testing hours,$81.00 per testing hour],[Selling,Number of sales calls,$1,486.00 per sales call]]
The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 110 direct labor-hours, 19 hours of product testing, and 3 sales calls.
Required:
What is the total overhead cost assigned to the order for heavy-duty trailer axles?
\table[[Activity Cost Pool,ABC Cost],[Order size,],[Customer orders,],[Product testing,],[Selling,],[Tntal nuarhoar mat,]]
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students