Answer the Following Questions Using the Information Below:
Comfort Corporation

question 8

Multiple Choice

Answer the following questions using the information below:
Comfort Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:
$\begin{array}{lrrr}&\text { Number of }&\text { Number of }&\text { Number of } \\\text { Product }&\text { Setups }&\text { Components }&\text { Direct Labor Hours }\\\text { Standard } & 12 & 8 & 255 \\\text { Deluxe } & 28 & 12 & 245 \\\text { Overhead costs } & \$ 52,000 & \$ 78,000 \end{array}$
-Number of setups and number of components are identified as activity-cost drivers for overhead.Assuming an activity-based costing system is used,what is the total amount of overhead costs assigned to the standard model?

• A) $49,200
• B) $45,600
• C) $46,800
• D) $47,400

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