Cleveland Choppers manufactures two types of motorcycles, a Base and a Loaded model. The following activity and costs have been gathered:ProductNumber ofComponentsNumber ofSetupsNumber ofDirect Labor HrsBase 15  20  700 Loaded 25  40  600 Overhead costs$27,000 $22,500    The number of components and number of setups are chosen as activity-cost drivers for overhead. Assuming an ABC costing system is being used, what is the total overhead cost assigned to the Base model?

A. $15,450.
B. $17,625.
C. $21,375.
D. $13,500.
E. $15,625.


Answer: B

Business

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