Answer:
$96,080
Explanation:
Calculation of Caldwell Company amount of overhead applied to Product A using activity-based costing.
First step is to use ABC, Overhead assigned to Product A :
Using this formula
[(Number of machine setups for Product A / 1,000) * Machine setup Overhead costs] + [(Number of machine hours for Product A / 30,000) * Machining Overhead costs] + [(Number of inspections for Product A / 1,500) * Inspecting Overhead costs]
Hence:
Let plug in the formula
= [(240 / 1,000) * $105,000] + [(22,200 / 30,000) * $50,000] + [(660 / 1,500) * $77,000]
= $25,200 + $37,000 + $33,880
= $96,080
Therefore Caldwell Company amount of overhead applied to Product A using activity-based costing will be:$96,080
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