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