If the company uses traditional costing and allocates overhead using direct materials cost,how much overhead cost should be assigned to Job A-15?
A)$10,500
B)$11,200
C)$2,800
D)$2,050

Question

Quizplus · Accepted Answer

Traditional costing allocates overhead based on a single cost driver, in this case, direct materials cost. The overhead cost assigned to Job A-15 is $10,500, which is calculated based on the proportion of direct materials cost used by the job relative to total direct materials cost.

If the Company Uses Traditional Costing and Allocates Overhead Using