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The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use.

	Direct Labor				Machine Use Hours
Department 1		$	16,400				1,760
Department 2			15,600				1,440
Totals		$	32,000				3,200
Factory overhead costs
Rent and utilities						$	9,800
Indirect labor							4,800
General office expense							5,200
DepreciationEquipment							4,200
Supplies							3,200
Total factory overhead						$	27,200

Compute the total amount of overhead cost allocated to Department 1 using activity-based costing.

The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use. Direct Labor $16,400 15,600 $32,000 Machine Use Hours 1,760 1,440 3,200 Department 1 Department 2 Totals Factory overhead costs Rent and utilities Indirect labor General office expense Depreciation Equipment Supplies Total factory overhead $ 9,800 4,800 5,200 4,200 3,200 $27,200 Compute the total amount of overhead cost allocated to Department 1 using activity-based costing. (Round activity rate answers to 2 decimal places.) Costs to be allocated Estimated Cost Estimated Cost driver Activity Rate Cost driver quantity incurred Indirect labor and supplies Rent, utilities, general office and depreciation 0

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