Miramar Industries Manufactures Two Products, a and B

Multiple Choice

Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Each product's total activity in each of the three areas are as follows:
What is the total overhead allocated to Product A using activity-based costing?

A) $194,500
B) $162,500
C) $32,000
D) $224,000