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
Answer:
Barnes Corporation
The total amount of overhead costs assigned to the deluxe model (using an activity-based costing system) is:
= $35,200.
Explanation:
a) Data and Calculations:
                             Overhead Costs  Standard  Deluxe Total Overhead Rate
Setups                          $20,000           22           28        50   $400 ($20,000/50)
Components                $40,000             8            12        20   $2,000 ($40,000/20)
Direct Labor Hours                             375         225      600
Total overhead costs  $60,000
Amount of overhead costs assigned to the deluxe model:
Set up costs = $11,200 (28 * $400)
Components costs = $24,000 (12 * $2,000) 
Total overheads assigned = $35,200