Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the comingyear: Cost Pool Overhead Costs Cost driver

Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the comingyear:

Cost Pool Overhead Costs Cost driver Activity level

Supervision of direct labor$320,000 Direct labor hours800,000

Machine maintenance$120,000 Machine hours960,000

Facility rent $200,000 Square meters of area100,000

Total overhead costs$640,000

The accounting records show the Mossman Job consumed the followingresources:

Cost driver Actual level

Direct labourhours 200

Machinehours 1,600

Square meters of area 50

If Gregory Enterprises uses a simple cost system based on direct labor hours then what amount of indirect costs will be allocated to the Mossmanjob?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Integrated Accounting For Windows

Authors: Dale Klooster

7th Edition

0538747978, 9780538747974

More Books

Students also viewed these Accounting questions

Question

14. Now reconcile what you answered to problem 15 with problem 13.

Answered: 1 week ago