Reference no: EM132960125

Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the cutting edges of bulldozer blades to replacement parts for Land Rovers. 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        $ 17.70 per direct labor-hour
Customer orders                            Number of customer orders               $ 353.00 per customer order
Product testing                            Number of testing hours                      $ 76.00 per testing hour
Selling                                        Number of sales calls                         $ 1,499.00 per sales call

The managing director of the company would like information concerning the cost of a recently completed order for heavy-duty trailer axles. The order required 120 direct labor-hours, 16 hours of product testing, and 3 sales calls.

Problem 1: What is the total overhead cost assigned to the order for heavy-duty trailer axles?