A company usesan activity based overhead allocation system, with three cost pool

Question

A company usesan activity based overhead allocation system, with three cost pools and drivers. Budgeted costs and drivers information for 2013 are as follows:

                                            Cost pool 1                              Cost pool 2                                Cost pool 3

Budgeted Costs                     103,000                                57,000                                        31,000

Cost Drivers                  

Total                                       156,400                                114,900                                     122,800

Job A                                      83,300                                  63,700                                       76,900

How much overhead was allocated to Job A?

Explanation / Answer

overhead allocated to job A = 103000*83300/156400

=54858.70

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.