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

question 88

Multiple Choice

Polk 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 deluxe model assuming activity-based costing is used.

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

---

Definitions:

High Levels

A term used to describe situations, measurements, or quantities that are significantly above average or normal range.

Manage Diversity

The practice of recognizing, embracing, and leveraging differences within a group or organization to foster an inclusive environment and achieve better outcomes.

Highlighting Strength

The practice of emphasizing and showcasing the strong points or advantages of a product, service, or individual to differentiate them from competitors.

Identifying Resource

The process of recognizing and locating resources that can be utilized for a specific purpose or project.