Pro Tool Company expects to produce 24,000 total units during the current period. The costs and cost drivers associated with four activity cost pools are given below:ACTIVITIES UNIT LEVEL BATCH LEVEL PRODUCT LEVEL FACILITY LEVELCost $50,000 $20,000 $10,000 $120,000Cost Driver 4,000 labor hrs 100 set ups % of use 24,000 units Production of 1,000 units of an auto towing tool required 800 labor hours and 12 setups and consumed 30% of the product sustaining activities. How much total overhead cost will be allocated to this product if the company allocates overhead using a single overhead allocation rate based on direct labor hours?
A. $100,000
B. $40,000
C. $10,000
D. $18,400
Answer: B
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a. 17
b. 18
c. 19
d. 22
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