If the company uses activity-based costing (ABC),how much overhead cost should be assigned to Job 101?
A)$1,300
B)$2,000
C)$5,000
D)$5,600

Question

Quizplus · Accepted Answer

Job 101 used 100 machine hours and 200 direct labor hours. The machine-related overhead rate is $5 per machine hour, and the direct labor-related overhead rate is $5 per direct labor hour. Therefore, the total overhead cost assigned to Job 101 is $1,300 (100 machine hours x $5 per machine hour + 200 direct labor hours x $5 per direct labor hour).

If the Company Uses Activity-Based Costing (ABC),how Much Overhead Cost