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