Pro Tool Company Expects to Produce 24,000 Total Units During

Multiple Choice

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: Production of 1,000 units of an auto towing tool required 800 labor hours, 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 on the basis of a single overhead allocation rate based on direct labor hours?
$\begin{array}{|c|c|c|c|c|}\hline \text { ACTIVITIES: } & \text { UNIT } & \text { BATCH } & \text { PRODUCT } & \text { FACILITY } \\\hline & \overline{\text { LEVEL }} & \overline{\text { LEVEL }} & \text { LEVEL } & \text { LEVEL } \\\hline \text { Cost } & \$ 50,000 & \$20,000 & \$ 10,000 & \$ 120,000 \\\hline\\\hline \text { river } & 4,000 \text { labor hrs } & 100 \text { set ups } & \% \text { of use } & 24,000 \\\hline\end{array}$

A) $18,400
B) $10,000
C) $100,000
D) $40,000