Columbus Company provides the following ABC costing information:

The above activities used by their three departments are:

If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate?
A) $75.00 per hour
B) $26.67 per hour
C) $42.00 per hour
D) $33.00 per hour

Question

Columbus Company provides the following ABC costing information:

The above activities used by their three departments are:

If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate?
A) $75.00 per hour 
B) $26.67 per hour 
C) $42.00 per hour 
D) $33.00 per hour

Quizplus · Accepted Answer

Overhead allocation rate = ($84,000 + $180,000) ÷ 8,000 = $33.00

Columbus Company Provides the Following ABC Costing Information