Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below:Activity Cost Pool Activity Measure Activity RateOrder size Number of direct labor-hours $17.80 per direct labor-hourCustomer orders Number of customer orders $354.00 per customer orderProduct testing Number of testing hours $72.00 per testing hourSelling Number of sales calls $1,488.00 per sales callThe managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 130 direct labor-hours, 11 hours of product testing, and 5 sales calls. Required:Prepare a report summarizing the overhead costs assigned to the order for heavy-duty trailer axles. What is the total overhead cost assigned to the order?Activity Cost Pool ABC CostOrder size Customer orders Product testing Selling Total overhead cost
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Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in app...
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