Rach & Johnson Is an Advertising Agency

Multiple Choice

Rach & Johnson 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:

Smythe Company is a client of Rach & Johnson.Recently,8 administrative assistant hours,2 new ad campaigns,and 6 meeting hours were incurred for the Smythe Company account.
Using the activity-based costing system,how much overhead cost would be allocated to the Smythe Company account?

A) $233
B) $508
C) $850
D) $3,912