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Random House Uses Activity-Based Costing How Much Are Total Overhead Costs to Be Charged to Books.The

Question 122

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Random House uses activity-based costing.The company produces soft and hardcover books.The estimated costs and expected activity for each of the overhead activity pools follow:  Activity  Estimated  Expected  Activity  Cost Pool  Cost  Hard-Cover  Soft-Cover  Total  Activity 1$15,0008007001,500 Activity 2$14,9005001,5002,000 Activity 3$27,6008004001,200\begin{array}{lllrr}\text { Activity } & \text { Estimated } & \text { Expected }&\text { Activity } \\\text { Cost Pool } & \text { Cost } & \text { Hard-Cover }&\text { Soft-Cover }&\text { Total } \\\hline\text { Activity } 1 & \$ 15,000 & 800 & 700 & 1,500 \\\text { Activity } 2 & \$ 14,900 & 500 & 1,500 & 2,000 \\\text { Activity } 3 & \$ 27,600 & 800 & 400 & 1,200\end{array} How much are total overhead costs to be charged to hardcover books?


A) $30,125
B) $8,000
C) $84,945
D) $25,691

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