Find the total overhead cost

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Reference no: EM1341298

The answer to Total overhead cost

ABC Company's overhead amounts to $300,000 per period based on an output of 200 units of A, 300 units of B, and 500 units of C. Direct labour costs of A, B, and C per unit amount to $75, 50, and 40 respectively. Each unit also requires 7, 12, and 20 machine hours per unit of production. Using direct labour as cost driver, total overhead chargeable to job/product A amounts to

a. 90,000
b. 100,000
c. 110,000
d. 120,000
e. none of the above

Reference no: EM1341298

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