Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions