Jefferson Company Manufactures Two Models of Pens, a Standard and a Deluxe

question 82

Multiple Choice

Jefferson Company manufactures two models of pens, a standard and a deluxe model.Three activities have been identified as cost drivers and the related overhead costs $60,000) pooled together to arrive at the following information: $\begin{array}{cccc} & \begin{array}{c}\text { Number } \\\text { of }\end{array} & \begin{array}{c}\text { Number } \\\text { of }\end{array} & \begin{array}{c}\text { Number } \\\text { of }\end{array} \\\text { Product } & \text { Setups } & \text { Components } & \text { DLH }\\\hline\text { Standard } & 22 & 8 & 375 \\\text { Deluxe } & 28 & 12 & 225 \\& & & \\\text { Costs per pool } & \$ 15,000 & \$ 36,000 & \$ 9,000\end{array}$ _____ is the total amount of overhead costs assigned to the standard model assuming activity-based costing is used.

• A)$26,625
• B)$33,375
• C)$37,500
• D)$22,500

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