Question: A company uses an activity-based costing system using three processes: tooling, processing and resources
The overhead costs assigned to each pool are $500,000, $2,000,000 and $800,000, respectively.
The activity drivers for each process are setups, direct labor hours, and square feet, respectively.
Totals for each process are 25 set ups. 20,000 direct labor hours and 40,000 square feet.
Product D used 3 setups, 3,000 direct labor hours and 8,000 square feet.
What is the total overhead cost that should be assigned to product D under the activity-based costing system?