Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:
|Standard Model||Deluxe Model|
|Number of machine hours||26,500||31,500|
|Number of material moves||625||925|
|Number of setups||85||575|
Total estimated overhead costs are $382,020, of which $186,000 is assigned to the material handling cost pool and $196,020 is assigned to the setup cost pool
Find the over head costs
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