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Premium Pizza, Inc

Question 118

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Premium Pizza, Inc. is in the process of documenting all their costs using Activity-Based Costing (ABC) . Premium specializes in unique sauces, and they have assigned the following Manufacturing Overhead (MOH) costs to their key activities: Moving and Sorting (150 pounds moved) , $32,000; Quality Control (800 inspections completed) , $22,400; and Cleaning/Maintenance (2,050 cleaning/maintenance hours) $16,820.
Premium Pizza, Inc. is in the process of documenting all their costs using Activity-Based Costing (ABC) . Premium specializes in unique sauces, and they have assigned the following Manufacturing Overhead (MOH)  costs to their key activities: Moving and Sorting (150 pounds moved) , $32,000; Quality Control (800 inspections completed) , $22,400; and Cleaning/Maintenance (2,050 cleaning/maintenance hours)  $16,820.   They bottled a total of 440 red sauce units and 336 white sauce units during the year. How much of the quality control MOH would be allocated to red sauce units? A)  $10,917.50 B)  $16,100.00 C)  $19,199.70 D)  $26,217.50 They bottled a total of 440 red sauce units and 336 white sauce units during the year. How much of the quality control MOH would be allocated to red sauce units?


A) $10,917.50
B) $16,100.00
C) $19,199.70
D) $26,217.50

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