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Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost driver...

Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools are given below:

Activities: Unit Level Batch Level Product Level Facility Level
Total Cost $32,480 $19,840 $5,680 $49,300
Total Cost Driver Volume 5,800 labor hours 400 set ups % of use 29,000 units

  
Production of 26,000 units of a hand-held tiller required 320 labor hours, 41 setups, and consumed 40% of the product sustaining activities. Assuming the company uses activity-based costing, how much total overhead will be allocated to this tool? (Do not round intermediate calculations. Round final answer to the nearest whole dollar.)

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Answer #1

Calculate overhead allocated

Unit level (32480/5800*320) 1792
Batch level (19840/400*41) 2033.60
Product level (5680*40%) 2272
Facility level (49300/29000*26000) 44200
Total overhead 50298
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