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Berkeley Inc. accumulates all its indirect costs in a single pool and then allocates them to each unit of output produced using machine hours. It
Berkeley Inc. accumulates all its indirect costs in a single pool and then allocates them to each unit of output produced using machine hours. It allocates its indirect cost to units of output on a weekly basis. The information provided below relates to the period from 1 July 2020 to 30 June 2021 Actual total indirect cost $100,000 Budgeted total indirect cost $110,000 Actual total machine hours 5,000 Budgeted total machine hours 4,000 Based on the information above, the total amount of indirect cost that would be allocated to all the units of output produced by the company in the twelve months ended 30 June 2021 before end-of-period adjustments are made (if any) is closest to: $100,000 O $110,000 $80,000 $137,500 $88,000
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