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 | $380,000 | Direct laborhours | 760,000 | ||
Machine maintenance | $120,000 | Machinehours | 960,000 | ||
Facility rent | $200,000 | Square feet of area | 125,000 | ||
Total overhead costs | $460,000 |
The accounting records show the Mossman Job consumed the following resources:
Cost driver | Actual level | |
Direct laborhours | 200 | |
Machinehours | 1,600 | |
Square feet of area | 50 |
using the three cost pools to allocate overhead cost, what is the total amount of over head cost to be allocated to the mossman job?
a. 389.00
b. 380.00
c. 376.00
d. 385.50
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