Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:

-Refer to Exhibit 3-1.What is the total overhead cost applied to Thirst Quench using activity-based costing?
A)$52,868
B)$21,142
C)$34,322
D)$10,000
E)None of the answer choices is correct.

Question

Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
 
-Refer to Exhibit 3-1.What is the total overhead cost applied to Thirst Quench using activity-based costing?
A)$52,868 
B)$21,142 
C)$34,322 
D)$10,000 
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The Answer of Exhibit 3-1
Hydrate Inc.makes two types of sports drinks and is implementing an activity-based costing system.Previously,all overhead had been applied on the basis of machine hours.The company produces 22,500 units of Sports Light and 42,284 units of Thirst Quench.Additional data is as follows:
 
-Refer to Exhibit 3-1.What is the total overhead cost applied to Thirst Quench using activity-based costing?
A)$52,868 
B)$21,142 
C)$34,322 
D)$10,000 
E)None of the answer choices is correct.

Exhibit 3-1 Hydrate Inc.makes Two Types of Sports Drinks and Is Implementing