activity based costing 461477

Transvaal Mining Tools Ltd. of South Africa makes specialty tools used in the mining industry. The company uses an activity-based costing system for internal decision-making purposes. The company has four activity cost pools as listed below: Activity Cost Pool Activity Measure Activity Rate Order size Number of direct labor-hours R 17.60 per direct labor-hour* Customer orders Number of customer orders R 360 per customer order Product testing Number of testing hours R 79 per testing hour Selling Number of sales calls R 1,494 per sales call * (The currency in South Africa is the rand, denoted here by R.) The managing director of the company would like information concerning the cost of a recently completed order for hard-rock drills. The order required 150 direct labor-hours, 18 hours of product testing, and three sales calls. Required: a. Prepare a report summarizing the overhead costs assigned to the order for hard-rock drills. (Omit the “R” sign in your response.) Activity Cost Pool ABC Cost Order size R Customer orders Product testing Selling Total R b. What is the total overhead cost assigned to the order? (Omit the “R” sign in your response.) Total overhead cost R

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