Leslie Is the New Controller for Toasties, a Coffee Bean

Multiple Choice

Leslie is the new controller for Toasties, a coffee bean roaster, and she has decided to introduce some changes that she believes will assist management in making more informed cost decisions. At her previous job, Leslie implemented activity-based costing, and the management was thrilled to be able to better allocate their Manufacturing Overhead (MOH) costs to their products. Leslie is optimistic that Toasties will benefit in the same manner and has identified the following key activities:
Machining $48,400 (8,000 machine hours)
Cleaning/Maintenance $36,700 (6,850 cleaning/maintenance hours)
Roaster supervisor wages $84,330 (16,800 supervisor hours)
Leslie anticipates that Toasties will roast 12,400 pounds of light beans and 18,990 pounds of dark beans. The light beans will use the following: Machining, 3,200 machine hours; Cleaning/Maintenance, 2,980 cleaning/maintenance hours; and 7,100 Roaster Supervisor Hours. The dark beans will use the following: Machining, 4,800 machine hours; Cleaning/Maintenance, 3,870 cleaning/maintenance hours, and 9,700 Roaster Supervisor Hours. What is the total amount of MOH costs that will be allocated to the light beans based upon ABC? (If required, round calculations to two decimal places.)

A) $67,587.60
B) $70,974.80
C) $74,362.00
D) $181,404.80