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Fletes Corporation manufactures two products: Product O95C and Product M31N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products O95C and M31N.
Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours$ 207,000 9,000MHsMachine setupsNumber of setups$ 140,000 350setupsProduct design Number of products$ 98,000 2productsOrder size Direct labor-hours$ 340,000 10,000DLHs
Activity Measure Product O95C Product M31N Machine-hours 6,000 3,000Number of setups190 160Number of products1 1Direct labor-hours4,000 6,000
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C?
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