Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost driver of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows:
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the costs assigned to leashes for supervising are 608956
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Total Expected |
Estimated |
Cost Drivers by Product |
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Cost Drivers |
Cost Drivers |
Overhead |
Leashes |
Collars |
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Purchase orders |
130,000 orders |
$260,000 |
70,000 |
60,000 |
|
Parts |
800,000 pails |
400,000 |
300,000 |
500,000 |
|
Labor hours |
25,000 hours |
300,000 |
15,000 |
10,000 |
|
$960,000 |
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The costs assigned to leashes for supervising are:
a. $ 90,000.
b. $180,000.
c. $120,000.
d. $ 60,000.
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