Answer the Following Questions Using the Information Below:
Barnes Corporation

question 136

Multiple Choice

Answer the following questions using the information below:
Barnes Corporation manufactures two models of office chairs,a standard and a deluxe model.The following activity and cost information has been compiled:
$$\begin{array} { l r r r } \text { Product } & \begin{array} { r } \text { Number of } \\\text { Set-ups }\end{array} & \begin{array} { r } \text { Number of } \\\text { Components }\end{array} & \begin{array} { r } \text { Number of } \\\text { Direct Labour Hours }\end{array} \\\hline \text { Standard } & 22 & 8 & 500 \\\text { Deluxe } & 28 & 12 & 300 \\\text { Overhead costs } & \$ 30000 & \$ 60000 &\end{array}$$
-Number of set-ups and number of components are identified as activity-cost drivers for overheads.Assuming an activity-based costing system is used,what is the total amount of overhead costs assigned to the deluxe model?

• A)$22 500
• B)$52 800
• C)$37 500
• D)$24 800

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Definitions:

Major Organic Compound

A primary or predominant organic substance in a mixture or reaction.

Reaction

The act of chemical substances converting into different substances as a result of their interaction.

Major Organic Product

The primary substance formed in the highest yield during a chemical reaction involving organic compounds.

Reaction

A process through which one or more substances are changed into one or more different substances through the rearrangement, removal, replacement, or addition of atoms.