Total estimated overhead costs are 263000 of which 110400

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Reference no: EM13587582

Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:

	Standard Model	Deluxe Model
Number of machine hours	32,500	35,000
Number of material moves	380	580
Number of setups	70	475

Total estimated overhead costs are $263,000, of which $110,400 is assigned to the material handling cost pool and $152,600 is assigned to the setup cost pool.

Reference no: EM13587582

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