6) XX company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Supervision of direct labor Machine maintenance Overhead Costs $320,000 $120,000 $200,000 $640,000 Cost driver Direct labor-hours Machine-hours Activity level 800,000 960,000 100,000 Facility rent Total overhead costs Square feet of area If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for XX? A) $0.80 per direct labor-hour B) $0.50 per direct labor-hour C) $0.40 per direct labor-hour D) $1.20 per direct labor-hour 7) SS company adopts ABC, it has three main activities. If you learn that machine maintenance activity, one of the activities, has an activity rate of $0.125 per machine hour. The accounting records show that Job 222 consumed the following resources: Cost driver Direct labor-hours Machine-hours Square feet of area Actual level 200 1,600 50 What is the total overhead costs allocated to job 222 using ABC: a) $200 per machine hour b) $200 c) 1,600 machine hours d) None of the above Good Luck