Sports Nutrition, Inc. makes two types of health bars and is implementing an ABC system....
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Accounting
Sports Nutrition, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period; 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22,500 units of Nutty Bars and 54,000 units of Raisin Bars. Additional data is as follows:
| Cost Driver and | Estimated |
|
| |
|
| Estimated Level | Overhead | Use of Cost Driver | Use of Cost Driver |
| Cost Pool | of Activity | Cost | by Nutty Bars | by Raisin Bars |
| Equipment Setup | 100 setups | $20,000 | 65 setups | 35 setups |
| Materials Ordering | 140 orders | $21,000 | 95 orders | 45 orders |
| Quality Control | 200 inspections | $22,000 | 150 inspections | 50 inspections |
| Mixing | 9,000 machine hours | $18,000 | 5,000 machine hours | 4,000 machine hours |
What is the total overhead cost applied to Raisin Bars when using activity-based costing?
Group of answer choices
$53,750
$36,000
$27,250
$45,000
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