Figure 4-12 Vaughn, Inc., has identified the following overhead costs and activity drivers for next year:
The following are two of the jobs completed during the year:
The company's normal activity is 2,000 direct labor hours.
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Refer to Figure 4-12.If kilowatt hours are used to assign power costs, the amount of power costs assigned to Job 10A would be
A) $33.20.
B) $30.00.
C) $102.00.
D) $53.32.

Question

Figure 4-12 Vaughn, Inc., has identified the following overhead costs and activity drivers for next year:
 The following are two of the jobs completed during the year:
 The company's normal activity is 2,000 direct labor hours.
-
Refer to Figure 4-12.If kilowatt hours are used to assign power costs, the amount of power costs assigned to Job 10A would be
A) $33.20. 
B) $30.00. 
C) $102.00. 
D) $53.32.

Quizplus · Accepted Answer

The correct answer is $30.00, which is calculated based on the kilowatt hours used by Job 10A and the rate per kilowatt hour.