Question
Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost
Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
Cost Pool Overhead Costs Cost driver Activity level
Supervision of direct labor $624,000 Direct labor-hours 940,000
Machine maintenance $100,000 Machine-hours 840,000
Facility rent $216,000 Square feet of area 140,000
Total overhead costs $940,000
The accounting records show the Mossman Job consumed the following resources:
Cost driver Actual level
Direct labor-hours 290
Machine-hours 1,681.68
Square feet of area 50
Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job? (Do not round any intermediary calculations.)
Select one:
a. $1,881.88
b. $200.20
c. $1,681.68
d. $210.45
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