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Author Question: Milan Company has identified three cost pools to allocate overhead costs. The following estimates ... (Read 139 times)

mmm

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Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost PoolOverhead CostsCost driverActivity level
Supervision of direct labor$624,000Direct labor-hours940,000
Machine maintenance$100,000Machine-hours840,000
Facility rent$216,000Square feet of area140,000
Total overhead costs$940,000

The accounting records show the Mossman Job consumed the following resources:

Cost driverActual level
Direct labor-hours290
Machine-hours1,681.68
Square feet of area50

Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job? (Do not round any intermediary calculations.)
◦ $1,881.88
◦ $200.20
◦ $1,681.68
◦ $210.45


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Marked as best answer by mmm on Mar 6, 2021

Pswine

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mmm

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


mcabuhat

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Reply 3 on: Yesterday
Gracias!

 

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