Rocoe Company Produces a Variety of Garden Tools in a Highly

Multiple Choice

Rocoe Company produces a variety of garden tools in a highly automated manufacturing facility.The costs and cost drivers associated with four activity cost pools are given below: $\begin{array}{c}\begin{array}{|l|}\hline\\\hline \text {Activities:}\\\hline \text {Total cost}\\\hline \text {Total cost driver volume}\\\hline \end{array}\begin{array}{l|}\hline\text { Unit Level }\\\hline\\\hline\$ 30,000 \\\hline5,000 \text { labor hours }\\\hline \end{array}\begin{array}{l|}\hline\text { Batch Level}\\\hline\\\hline \$ 12,000 \\\hline 240 \text { set ups }\\\hline \end{array}\begin{array}{l|}\hline\text {Product Level}\\\hline \\\hline \$ 6,000 \\\hline \% \text { of use }\\\hline \end{array}\begin{array}{l|}\hline\text { Facility Level }\\\hline\\\hline \$3 6 , 0 0 0 \\\hline 36,000 \text { units }\\\hline\end{array} \end{array}$
Production of 10,000 units of a hand-held tiller required 1,000 labor hours,80 setups,and consumed 25% of the product sustaining activities.Assuming the company uses activity-based costing,how much total overhead will be allocated to this tool?

A) $84,000
B) $26,000
C) $21,500
D) $11,500