Barnes Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled.

                               Number of           Number of                    Number of

Product                   Setups               Components           Direct Labor Hours

Standard                   22                           8                                    375

Deluxe                      28                           12                                    225

Overhead costs       $20,000                 $40,000

1- Assume a traditional costing system applies overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the standard model?

A. $22,500

B. $35,200

C. $37,500

D. $24,800

E. None of the above

2. Assume a traditional costing system applies overhead costs based on direct labor hours. What is the total amount of overhead costs assigned to the deluxe model?

A. $24,800

B. $35,200

C. $37,500

D. $22,500

E. None of the above

3. If number of setups and number of components are identified as activity-cost drivers for overhead in a activity-based costing system what is the total amount of overhead costs assigned to the standard model?

A. $22,500

B. $35,200

C. $37,500

D. $24,800

E. None of the above

4. If number of setups and number of components are identified as activity-cost drivers for overhead in an activity-based costing system, what is the total amount of overhead costs assigned to the deluxe model?

A. $22,500

B. $35,200

C. $37,500

D. $24,800

E. None of the above

5. Jones Company has $10 of fixed cost per unit and total variable costs of $120,000 if 12,000 units are produced. The relevant range is 10,000 units to 20,000 units. If 10,000 units are produced, costs are:

A. $10 per unit

B. $120,000 in total.

C. $20 per unit

D. $220,000 in total.

E. None of the above