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Billinudgel Corporation manufactures two models of motorized go‐carts, a standard and a deluxe model. The following activity and cost information has been compiled:
Product
|
Number of
Setups
|
Number of
Components
|
Number of
Direct Labor Hours
|
Standard
|
15
|
10
|
750
|
Deluxe
|
35
|
15
|
500
|
Overhead costs
|
$16,500
|
$23,500
|
|
QUESTION68. Assume a traditional costing system applies the $40,000 of overhead costs based on direct labor hours. What is the total amount of overhead cost assigned to the Deluxe model?