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Pretty Dog Corporation Manufactures Two Models of Grooming Stations,a Standard

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Pretty Dog Corporation manufactures two models of grooming stations,a standard and a deluxe model.The following activity and cost information has been compiled:
 Product  Number of  Setups  Number of  Components  Number of  Direct Labor  Hours  Standard 330650 Deluse 750150 Overhead  costs $30,000$50,000\begin{array} { | l | c c | c | } \hline \text { Product } & \begin{array} { c } \text { Number of } \\\text { Setups }\end{array} & \begin{array} { c } \text { Number of } \\\text { Components }\end{array} & \begin{array} { c } \text { Number of } \\\text { Direct Labor } \\\text { Hours }\end{array} \\\hline \text { Standard } & 3 & 30 & 650 \\\hline \text { Deluse } & 7 & 50 & 150 \\\hline \begin{array} { l } \text { Overhead } \\\text { costs }\end{array} & \$ 30,000 & \$ 50,000 & \\\hline\end{array}
Assume a traditional costing system applies the overhead costs based on direct labor hours.Required:
a.What is the total amount of overhead costs assigned to the standard model?
b.What is the total amount of overhead costs assigned to the deluxe model?
Assume an activity-based costing system is used and that the number of setups and the number of components are identified as the activity-cost drivers for overhead.c.What is the total amount of overhead costs assigned to the standard model?
d.What is the total amount of overhead costs assigned to the deluxe model?

Correct Answer:

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a.$65,000
b.$15,000
c.$27,750
d.$52,250...

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