Business, 02.04.2020 01:14 lailabirdiemae

Valdez Company produces several lines of storage boxes. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. During the upcoming period the company expects to produce 66,000 units. The costs and cost drivers associated with four activity cost pools are given below:

ACTIVITIES: UNIT BATCH PRODUCT FACILITY
LEVEL LEVEL LEVEL LEVEL
Cost $66,000 $9,600 $16,600 $37,600
Cost Driver 10,000 labor hrs 360 set ups % of use 66,000 units

Production of 34,000 units of its popular over-stuffed box required 3,700 labor hours, 166 setups, and consumed one-third of the product sustaining activities.

What amount of unit-level costs will be allocated to the product? (Do not round intermediate calculations.)

a.$10,000

b.$24,420

c.$8,500

d.$8,100

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Valdez Company produces several lines of storage boxes. The factory is highly automated and uses an...

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