The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the...

The following is taken from Clausen Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead cost allocated to Dept. 1 using activity-based costing.

	Direct Labor Hours		Machine Hours
Operating Dept. 1		1,020					9,600
Operating Dept. 2		2,380					6,400
Totals		3,400					16,000
Factory overhead costs
Rent and utilities						$	22,900
Indirect labor							18,500
Depreciation – Equipment							15,600
Total factory overhead						$	57,000

Extracted text: Multiple Choice $28,350. $5,550. $28,650. $23,100. $15,400.


Extracted text: The following is taken from Clausen Company's internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor hours, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead cost allocated to Dept. 1 using activity-based costing. Direct Labor Machine Hours Hours Operating Dept. 1 Operating Dept. 2 1,020 9,600 2,380 6,400 Totals 3,400 16,000 Factory overhead costs Rent and utilities $22,900 Indirect labor 18,500 Depreciation - Equipment 15,600 Total factory overhead $57,000