Reference no: EM132605899

Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:

Activity                 Cost Pool            Activity Measure             Activity Rate              Order size

Number of                       direct labor-hours                                $ 16.50 per   direct labor-hour

Customer orders       Number of customer orders                         $ 361.00 per   customer order

Product testing            Number of testing hours                         $ 81.00 per         testing hour

Selling                         Number of sales calls                          $ 1,486.00 per       sales call

• The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 170 direct labor-hours, 16 hours of product testing, and 5 sales calls.

Required:

Question 1: What is the total overhead cost assigned to the order for heavy-duty trailer axles?