Question

ises 10 pts Durban Metal Products, Ltd of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below s Activity Cost Pool Order Size Customer orders Product testing Selling Activity measure Number of direct labor-hours umber of customer orders Number of testing hours Number of sales calls Activity Rate 17.00 per direct labor-hour - 352.00 per customer order -34.00 per testing hour 1.450.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for heavy duty trailer axles. The order required 190 direct labor hours, 18 hours of product testing, and 3 sales calls Required: What is the total overhead cost assigned to the order for heavy-duty trailer axles? Activity Cost Pool ABC Cost Condens

please explain

Answer 1

ABC cost can be obtained by multiplying Activity measure by activity rate.

Activity cost pool	ABC cost
Order size	3230	=190*17
Customer orders	352	=352*1
Product testing	1512	=18*84
Selling	4452	=3*1484
Total overhead cost	9546