Reference no: EM132721479

Transvaal Mining Tools Ltd. of South Africa makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below.

The currency in South Africa is the rand, denoted here by R:

Activity Cost Pool                    Activity Measure                       Activity Rate
Order size                Number of direct labour-hours             R 17.60 per direct labour-hour
Customer orders               Number of customer orders            R 360.00 per customer order
Product testing            Number of testing hour                 s R 79.00 per testing hour
Selling                  Number of sales calls                          R 1,494.00 per sales call

The managing director of the company would like information concerning the cost of a recently completed order for hard-rock drills. The order required 150 direct labour-hours, 18 hours of product testing, and three sales calls.

Problem 1: Prepare a report summarizing the overhead costs assigned to the order for hand-rock drills.What is the total overhead cost assigned to the order?