Question
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost
Nile Corp. 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 $395,000 Direct laborhours 790,000
Machine maintenance $152,000 Machinehours 950,000
Facility rent $208,000 Square feet of area 130,000
Total overhead costs $755,000
The accounting records show the Mossman Job consumed the following resources:
Cost driver Actual level
Direct laborhours 250
Machinehours 1,500
Square feet of area 60
Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job?
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