Rossi 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:
Activities: |
Unit Level |
Batch Level |
Product Level |
Facility Level |
|
|
|
|
|
Total Cost |
$30,000 |
$12,000 |
$6,000 |
$36,000 |
Total Cost Driver Volume |
5,000 labor hours |
240 set ups |
% of use |
36,000 units |
Production of 10,000 units of a hand-held tiller required 500 labor hours, 25 setups, and consumed 40 % of the product sustaining activities. Assuming the company uses activity-based costing, how much total overhead will be allocated to this tool? (Do not round intermediate calculations.)