Lunch Wagon produces two varieties of deli salad trays-tuna and chicken. It has traditionally allocated...

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Accounting

Lunch Wagon produces two varieties of deli salad trays-tuna and chicken. It has traditionally allocated overhead based on direct labor hours. The company recently set up three activity centers to implement activity-based costing. Information concerning the costs and activities related to the deli trays follows.
\table[[,,,,Actual Activity],[,Estimated Activity,\table[[Estimated],[Cost]],\table[[Actual],[Cost]],Tuna,Chicken],[Direct labor,\table[[3,640 hours @],[$13.70? hour]],$49,868,$49,084,1.4 hrs per tray,1.3 hrs per tray],[\table[[Direct materials],[Materials]],\table[[6,500 pounds@$7.70/pd.]],50,050,53,110,2.9 pounds,\table[[2.2 pounds]]],[handling,1,250 requisitions,,22,375,810 requisitions,420 requisitions],[Quality control,278 inspections,14,595,14,178,160 inspections,125 inspections],[\table[[Maintenance],[Units of product]],\table[[1,800 machine hrs],[2,500 trays]],31,320,31,230,\table[[780 machine],[hrs],[1,650 trays]],\table[[1,010 machine],[hrs],[920 trays]]]]
The actual direct materials cost per pound is $7.80, and the actual direct labor cost per hour is $14.00. What is the amount of overhead assigned to chicken trays using activity-based costing?
$31,781
$63,751
$48,166
$48,525
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