The overhead cost allocated to Zeta by using activity-based costing procedures would be:
A)$240,000.
B)$356,000.
C)$444,000.
D)$560,000.
E)some other amount.

Question

Quizplus · Accepted Answer

The overhead cost allocated to Zeta by using activity-based costing procedures is calculated as follows:
Activity 1 cost = 60,000 (20% of $300,000)
Activity 2 cost = 100,000 (30% of $333,333)
Activity 3 cost = 196,000 (49% of $400,000)
Total overhead cost = $356,000 (sum of activity costs)

The Overhead Cost Allocated to Zeta by Using Activity-Based Costing