One of Hartman Company's activity cost pools is inspecting, with estimated overhead of $140,000. Hartman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs

the cost assigned to throw rugs is $49,000

Explanation:

The computation of the cost assigned to throw rugs is shown below:

Cost assigned is

= Estimated overhead × number of inspections ÷ total number of inspections

= $140,000 × 700 ÷ (700 + 1300)

= $49,000

hence, the cost assigned to throw rugs is $49,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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