Question
Zoom Company has identified three cost pools to allocate overhead costs based on ABC concept. The following estimates are provided for the coming year: Cost
Zoom Company has identified three cost pools to allocate overhead costs based on ABC concept. The following estimates are provided for the coming year:
Cost Pool | Overhead Costs | Cost driver | Activity level |
|
Supervision of direct labor | $380,000 | Direct labor-hours | 760,000 | DLH |
Machine maintenance | $115,200 | Machine-hours | 960,000 | MH |
Facility rent | $200,000 | Square feet of area | 125,000 | Sf. |
Total overhead costs | $695,200 |
|
|
|
The accounting records show the Mossman Job consumed the following resources:
Cost driver | Actual level |
Direct labor-hours | 200 |
Machine-hours | 1,600 |
Square feet of area | 50 |
Using ABC (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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