Estimated costs for activity cost pools and other items are as follows: Machining $800,000
Assembling 200,000
Advertising 450,000
Inspecting and testing 175,000
Total estimated overhead is
A)$1,000,000.
B)$1,175,000.
C)$1,450,000.
D)$1,625,000.

Question

Quizplus · Accepted Answer

The total estimated overhead is the sum of all the activity cost pools and other items, which is $800,000 + $200,000 + $450,000 + $175,000 = $1,625,000. Therefore, choice B is the correct answer.

Estimated Costs for Activity Cost Pools and Other Items Are