Figure 4-8 Zipp Company Manufactures Two Products (X and Y)

Multiple Choice

Figure 4-8 Zipp Company manufactures two products (X and Y) .The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:

-Refer to Figure 4-8.Using functional-based costing, what is the amount of overhead cost to be assigned to Product X using machine hours as the allocation base?

A) $12,000
B) $60,000
C) $48,000
D) $16,800