Carter Company Manufactures Two Models of Pens-A Standard and a Deluxe

question 56

Multiple Choice

Carter 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: $\begin{array}{llll}& \text { Number of } & \text { Number of } & \text { Number of } \\\text { Product } & \text { Setups } & \text { Components } & \text { DLH }\\\text { Standard } & 22 & 8 & 375 \\\text { Deluxe } & 28 & 12 & 225 \\\text { Costs per pool } & \$ 15,000 & \$ 36,000 & \$ 9,000\end{array}$ is the total amount of overhead costs assigned to the deluxe model assuming traditional costing and applying overhead costs based on direct labor hours is used.

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

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