Rach & Johnson Is an Advertising Agency Smythe Company Was a Client of Rach & Johnson

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: $$\begin{array} { | l | r | l | } \hline \text { Activity cost pool } & { \text { Activity rate } } \\\hline \text { Clerical costs } & \$ 26 & \text { per administrative assistant hour } \\\hline \text { Legal filing fees } & \$ 150 & \text { per new ad campaign } \\\hline \text { Client meeting time } & \$ 57 & \text { per meting hour } \\\hline\end{array}$$ Smythe Company was 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