Original company manufactures two models of juice, Big model and Small model. The Following activity...
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Accounting
Original company manufactures two models of juice, Big model and Small model. The Following activity and cost information has been compiled: Number of setups 3 setups for Big and 7 setups for Small, number of components 30 and 50 respectively and number of direct labor hours 650 and 150 respectively. Assume an activity-based costing system is used and that the number of setups identified as the activity-cost driver for $20,000 overhead, and the number of components are identified as the activity-cost driver for $60,000 overhead. the total amount of overhead costs assigned to the Big model is:
a.
$51,500.
b.
$60,000.
c.
$28,500.
d.
$65,000.
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