Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
The accounting records show the Mossman Job consumed the following resources:

-Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job?
A)$200
B)$380
C)$675
D)$170

Question

Answer the following questions using the information below:
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
  The accounting records show the Mossman Job consumed the following resources:
 
-Using the three cost pools to allocate overhead costs, what is the total amount of overhead costs to be allocated to the Mossman Job?
A)$200 
B)$380 
C)$675 
D)$170

Quizplus · Accepted Answer

The Mossman Job used 10 direct labor hours, which is 20% of the total direct labor hours (10/50 = 20%). The total overhead cost is $1,900, so the overhead cost allocated to the Mossman Job is $1,900 x 20% = $380.

Answer the Following Questions Using the Information Below