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Managerial Accounting

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Super Shelves: Assigning Costs to Product Line

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Super Shelves manufactures standard sizes and custom-sized shelving for closets. They are preparing their annual profit plan and are trying to forecast how much of the forklift costs will be assigned to their two lines: standard-size and custom-sized shelves.

The controller estimates the activity and costs as follows:

Custom Shelves Standard Shelves
boxes produced 25,000 25,000
forklift hours per product line 5,000 15,000
direct labor hours 1,250 800
budgeted forklift cost \$50,000

If Super Shelves uses forklift hours as their cost driver, how much of the forklift costs will be allocated to custom shelves?

Enter your response as a whole number, without dollar sign or comma. For instance, enter 56000 not \$56,000.