A company identified the following partial list of activities, costs, and activity drivers expected for the next year: How much overhead in total will be assigned to the Product A line using activity-based costing?
A) $42,500.
B) $132,900.
C) $90,400.
D) $66,000.
E) $66,450.

Question

A company identified the following partial list of activities, costs, and activity drivers expected for the next year:   How much overhead in total will be assigned to the Product A line using activity-based costing?
A) $42,500. 
B) $132,900. 
C) $90,400. 
D) $66,000. 
E) $66,450.

Quizplus · Accepted Answer

Extrusion activity: ($88/batch)(200) = $17,600
Handling costs: ($32/order)(75 orders) = $2,400
Packaging activity: ($.03/unit)(750,000 units) = $22,500
Total overhead cost = $42,500

A Company Identified the Following Partial List of Activities, Costs