Dorothy is the new controller for Sandhill, a coffee bean roaster, and she has decided to introduce some changes that she believes will
assist management in making more informed cost decisions. At her previous job, Dorothy implemented activity-based costing, and the
management was thrilled to be able to better allocate the company's manufacturing overhead (MOH) costs to its products. Dorothy is
optimistic that Sandhill will benefit in the same manner and has identified the following key activities:
Machining
$52000 (8000 machine hours)
Cleaning/Maintenance
$36623 (6910 cleaning/maintenance hours)
Roaster supervisor wages
$84100 (16820 supervisor hours)
Dorothy anticipates that Sandhill will roast 12420 pounds of light beans and 19010 pounds of dark beans. The light beans will use the
following: Machining, 3200 machine hours; Cleaning/Maintenance, 2990 cleaning/maintenance hours; and 7120 Roaster Supervisor
Hours. The dark beans will use the following: Machining, 4810 machine hours; Cleaning/Maintenance, 3920 cleaning/maintenance
hours, and 9790 Roaster Supervisor Hours. What is the total amount of MOH costs that will be allocated to the light beans based upon
ABC? (Do not round intermediate calculations.)
Ο $68864.90
â—‹ $182487.00
Ο $72247.00
Ο $75635.07