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Business, 30.07.2020 22:01 kimlyn58p0wyn0

Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 180,000 9,000 Machine-hours Machine setups Number of setups $ 125,000 250 setups Product design Number of products $ 44,000 2 products Order size Direct labor-hours $ 260,000 10,000 Direct labor-hours Activity Measure Product F82D Product T05P Machine-hours 5,000 4,000 Number of setups 160 90 Number of products 1 1 Direct labor-hours 4,000 6,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T05P?

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