The following is taken from Antuan Co.€™s internal records of its factory with two operating departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use.

Compute the total amount of overhead cost allocated to Operating Department 1 using activity-basedcosting.

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Direct Labor Machine Use Hours $9,400 Operating department Operating department 2.... 1,200 2,000 3.200 6.600 $16,000 Factory overhead costs Rent and utilities 6,100 2,000 1.500 1.300 Total factory overhead ..$13.600 General office expense 99 Supplies...