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32 of 60 > View Policies -/3 E! Current Attempt in Progress Betty is an accountant for Cullumber, Inc., a small factory that manufactures disposable
32 of 60 > View Policies -/3 E! Current Attempt in Progress Betty is an accountant for Cullumber, Inc., a small factory that manufactures disposable hospital gowns and slippers. Previously, Cullumber had been utilizing a traditional costing system to account for its budgeted Manufacturing Overhead (MOH) costs. After a few years, Betty recommended that the company opt for Activity-Based Costing (ABC) as that would afford it the opportunity to better account for the costs. She has determined that Cullumber had three key activities to use for MOH budgeted costs: Materials sorting, garment inspection, and materials management wages. She has collected the following data: Materials sorting: $37800 (3780 sorting hours) Garment inspection: $55900 (3727 inspection hours) Materials management wages: $19900 (13900 management hours) If gowns used 2000 sorting hours, then what amount of material sorting MOH costs will be allocated to slippers? $37800.00 $17800.00 $21600.00 $14939.67
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