Multiple Choice
Use the information below to answer the following question(s) .Bill Cobb Corporation had the following activities, pooled costs, and physical flow of driver units.The company uses activity-based costing. The above activities are used by departments X and Y as follows:
-Babcock Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs.The company has two departments: Assembly and Sanding.The Assembly Department uses a departmental overhead rate of $20 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labour hour.Job 396 used the following direct labour hours and machine hours in the two departments: The cost for direct labour is $25 per direct labour hour and the cost of the direct materials used by Job 396 is $1,200.What was the total cost of Job 396 if Babcock Industries used the departmental overhead rates to allocate manufacturing overhead?
A) $1,375
B) $1,425
C) $1,500
D) $1,600
E) $1,630
Correct Answer:

Verified
Correct Answer:
Verified
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