The Gardenview Corporation Has Identified the Following Overhead Costs and Activity
Question 193
Question 193
Multiple Choice
The Gardenview Corporation has identified the following overhead costs and activity drivers for next year: Overhead Item Setup costs Ordering costs Maintenance Power Expected Cost $200,00080,000400,00040,000 Activity Driver Number of setups Number of orders Machine hours Kilowatt hours Expected Ouantity 2501,6002,00040,000 The following are two of the jobs completed during the year: Direct materials Direct labor Units completed Direct labor hours Number of setups Number of orders Machine hours Kilowatt hours Job 6A $3,000$2,80010050142030 Job 8B $4,000$4,80016080452550 The company's normal activity is 2,000 direct labor hours. If the four activity drivers are used to allocate overhead costs, total overhead allocated to Job 6A would be
A) $5,533. B) $4,830. C) $5,030. D) $5,630.
Correct Answer:
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