Questions
MCD2150 - T1 - 2025 Week 11 Workshop 2 Quiz
Numerical
ABC Corporation manufactures a variety of products. ABC has been using a traditional overhead allocation system based on machine-hours. For the current year ABC decided to switch to an activity-based costing system using machine-hours and the number of inspections of activity. Information on these measures of activity and related overhead of the current year are as follows: [table] Indirect Cost | Estimated Activity Machine Cost | $400,000 | 50,000 Machine-hours Inspections Cost | $120,000 | 3,000 Inspections Total | $520,000 | [/table] Job #110 for the current year required 15 machine-hours and 2 inspections. What would be the total overhead cost allocated to this job? (no comma, no $ sign)
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
To allocate overhead using activity-based costing, we split the overhead into its activity-related rates and apply them to the job's activity usage.
First, determin......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!