Hone's Office Department manufactures computer desks in its Topeka, Kansas plant.
The Company uses an ABC system to allocate all manufacturing conversion costs (Direct Labor and manufacturing overhead).
Its activities and related data follow: AACTIVITY: Budgeted Cost Allocate Base Cost Materials Handling $300,000 # of parts $0.60
Assembling 2,500,000 Direct Labor hours 15.00
Painting 170,000 # of painted desks 5.00
Hone produced two styles of desks in March: The standard desk and unpainted desk.
Date for each follows:
Standard Desk 6,000 $96,000 120,000 6,000
Unpainted Desk 1,500 21,000 30,000 900