Answer:
$49,000
Explanation:
The number of inspection performed has a direct proportionality relationship with the allocated over heads. In other words, as the number of inspections performed increases, so does the overhead cost assigned to the production activity.
Total inspection = 700 + 1300 = 2000
Total overhead = $140,000
The inspecting cost pool to be assigned to throw rugs
= 700/2000 × $140,000
= $49,000
