Compute the Labour-related overhead costs

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Question - Quint Manufacturing uses an activity-based costing system. The company produces Model 1 and Model 2. Information relating to the two products is as follows:

 

Model 1

Model 2

Units produced

24,000

30,000

Machine hours

7,500

8,500

Direct labour hours

8,000

12,000

Material handling (number of moves)

4,000

6,000

Setups

5,000

7,000

The following costs are reported:

Material handling £40,000

Labour-related overhead 120,000

Setups 60,000

Required - Compute the Labour-related overhead costs assigned to Model 1?

a. £48,000.

b. £58,000.

c. £60,000.

d. £54,400.

Reference no: EM132831706

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