Question
XYZ company has supplied the following data from its activity-based costing system: Overhead Costs Wages and Salaries -$500,000 Other Overhead Costs - $200,000 Activity Cost
XYZ company has supplied the following data from its activity-based costing system:
Overhead Costs
Wages and Salaries -$500,000
Other Overhead Costs - $200,000
Activity Cost Pool Activity Measure Total Activity for the Year
Supporting direct labor Number of labor hours 15,000 Labor Hours
Order Processing Number of Customer Orders 300 Orders
Customer Support Number of Customers 400
Other n/a n/a
Distribution of Resource Consumption Across Activities
Supporting Direct Labor Order Processing Customer Support Other Total
Wages and Salaries 20% 20% 50% 10% 100%
Other Overhead Costs 30% 30% 20% 20% 100%
Assume job #333 required the following:
400 labor hours
5 customer orders
1 customer
How much ABC costs would be allocated to Job #333?
(A) $4,266.67(B) $5,967.29(C) $7,658.33 (D) $725.00
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