Reference no: EM132561624

Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:

                                      Number of                        Number of                   Number of

Product                                  Setups                        Components          Direct Labor Hours

Standard                             15                               9                             300

Deluxe                                     31                           20                          235

Overhead costs                           $78,200                                             $89,900

Question 1: Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?

A) $87,500

B) $114,700

C) $80,600

D) $84,050