#### Description of this paper

##### Barnes Corporation manufactures two models

**Description**

solution

**Question**

Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled.;Number of Number of Number of;Product Setups Components Direct Labor Hours;Standard 22 8 375;Deluxe 28 12 225;Overhead costs $20,000 $40,000;14. Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?;a. $24,800;b. $35,200;c. $37,500;d. $22,500.;15. Assume a traditional costing system applies the $60,000 of overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the deluxe model?;a. $24,800;b. $35,200;c. $37,500;d. $22,500.;16. 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. $24,800;b. $35,200;c. $37,500;d. $22,500.;17. 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 deluxe model?;a. $24,800;b. $35,200;c. $37,500;d. $22,500.

Paper#34413 | Written in 18-Jul-2015

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