Assuming that actual activity turns out to be the same as expected activity,the total amount of overhead cost allocated to Product X would be closest to:

Question

Quizplus · Accepted Answer

The correct answer is A because the total amount of overhead cost allocated to Product X would be closest to $196,800. This is because the actual activity turns out to be the same as expected activity, and the overhead rate is $196,800 / 1,200 hours = $164 per hour. Therefore, the total amount of overhead cost allocated to Product X would be 1,200 hours * $164 per hour = $196,800.

Assuming That Actual Activity Turns Out to Be the Same