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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.
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