Solution-What is the amount of machine maintenance costs

What is the amount of machine maintenance costs

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Reference no: EM133068455

Question - Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost Pool	Overhead Costs	Cost driver	Activity level
Supervision of direct labor	$624,000	Direct labor-hours	940,000
Machine maintenance	$100,000	Machine-hours	840,000
Facility rent	$216,000	Square feet of area	140,000
Total overhead costs	$940,000

The accounting records show the Mossman Job consumed the following resources:

Cost driver	Actual level
Direct labor-hours	290
Machine-hours	1,681.68
Square feet of area	50

Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job?

A) $1,881.88

B) $200.20

C) $1,681.68

D) $210.45

Reference no: EM133068455

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What is the amount of machine maintenance costs

Reference no: EM133068455

Reference no: EM133068455

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