Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

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

Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job? (Do not round any intermediary calculations.)
A) $1,881.88
B) $200.20
C) $1,681.68
D) $210.45

Question

Milan Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

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

Under activity-based costing, what is the amount of machine maintenance costs allocated to the Mossman Job? (Do not round any intermediary calculations.)
A) $1,881.88 
B) $200.20 
C) $1,681.68 
D) $210.45

Quizplus · Accepted Answer

Machine maintenance costs = 1,681.68 mh × ($100,000 ÷ 840,000) = $200.20

Milan Company Has Identified Three Cost Pools to Allocate Overhead