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 indirect labor allocated to Dept. 2 using activity-based costing.

	Direct Labor Hours		Machine Hours
Operating Dept. 1		930					9,240
Operating Dept. 2		2,170					6,160
Totals		3,100					15,400
Factory overhead costs
Rent and utilities						$	22,000
Indirect labor							17,600
Depreciation - Equipment							14,400
Total factory overhead						$	54,000

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 indirect labor allocated to Dept. 2 using activity-based costing. Direct Labor Machine Hours Hours Operating Dept. 1 Operating Dept. 2 930 9,240 2,170 6,160 Totals 3,100 15,400 Factory overhead costs Rent and utilities $22, е00 Indirect labor 17,600 Depreciation - Equipment 14,400 Total factory overhead $54,000


Extracted text: Multiple Choice $5,280. $12,320. $8,640. $8,800. $13,200.