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 overhead allocated to Product B using activity-based costing?
A) $135,000
B) $175,000
C) $292,500
D) $285,500

Question

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 overhead allocated to Product B using activity-based costing?
A) $135,000 
B) $175,000 
C) $292,500 
D) $285,500

Quizplus · Accepted Answer

The Answer of 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 overhead allocated to Product B using activity-based costing?
A) $135,000 
B) $175,000 
C) $292,500 
D) $285,500

Miramar Industries Manufactures Two Products, a and B