Rossi company produces a variety of garden tools in a


Rossi Company produces a variety of garden tools in a highly automated manufacturing facility. The costs and cost drivers associated with four activity cost pools are given below:

Activities: Unit Level Batch Level Product Level Facility Level
         
  Total Cost $30,000 $12,000 $6,000 $36,000
  Total Cost Driver Volume 5,000 labor hours 240 set ups % of use 36,000 units

Production of 10,000 units of a hand-held tiller required 500 labor hours, 25 setups, and consumed 40 % of the product sustaining activities. Assuming the company uses activity-based costing, how much total overhead will be allocated to this tool? (Do not round intermediate calculations.)

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Accounting Basics: Rossi company produces a variety of garden tools in a
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