Howard, Fine, & Howard Is an Advertising Agency

Multiple Choice

Howard, Fine, & Howard is an advertising agency. The firm uses an activity-based costing system to allocate overhead costs to its services. Information about the firm's activity cost pool rates follows: Stooge Company was a client of Howard, Fine, & Howard. Recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the Stooge Company account. Using the activity-based costing system, how much overhead cost would be allocated to the Stooge Company account?

A) $917
B) $501
C) $195
D) $3,484