What is the total amount of overhead applied to product a

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Question - A manufacturer produces three products: A, B, and C

The company uses the following information to determine activity rates for each pool

Cost Pool

Costs

Total Activity

Pool 1

$300,000

20,000 hours

Pool 2

$20,000

500 pounds

Pool 3

$10,000

100 moves

Total

$330,000

 

Data concerning the three products appear below:

Cost Driver

Number of hours

Number of pounds

Number of moves

Products A

10,000

150

20

Products B

7,500

250

30

Products C

2,500

100

50

Required - What is the total amount of overhead applied to product A?

a. $125,500

b. $150,000

c. $158,000

d. $265,000

Reference no: EM132644072

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