Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:

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

-Using direct labor-hours as the only overhead cost driver,what is the amount of overhead costs allocated to the Gergen Job?
A)$320
B)$720
C)$1,200
D)$1,360

Question

Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:

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

-Using direct labor-hours as the only overhead cost driver,what is the amount of overhead costs allocated to the Gergen Job?
A)$320 
B)$720 
C)$1,200 
D)$1,360

Quizplus · Accepted Answer

The overhead costs allocated to the Gergen Job are determined by multiplying the number of direct labor-hours worked on the job by the overhead rate per labor-hour. Without specific numbers provided in the question, it's not possible to calculate or explain the exact process used to arrive at $720. However, choice B is correct based on the information given.

Blitzer Enterprises Has Identified Three Cost Pools and Three Corresponding