Reference no: EM131024708

Benjamin Tools produces a variety of cutting instruments at its Amarillo manufacturing plant. The plant is highly automated and uses an ABC system to allocate overhead costs to its various product lines. The company expects to produce 48,000 total units during the current period. The costs and cost drivers associated with the four activity cost pools are given below: Activities: Unit Batch Product Facility Level Level Level Level Cost $100,000 $12,000 $20,000 $240,000 Cost Driver 8,000 DLH 100 set ups % of use 48,000 units Production of 3,000 units of a pipe-cutting tool required 800 labor hours, 25 setups, and consumed 20% of the product sustaining activities. What amount of total overhead was allocated to the pipe-cutting tool?