Howard,Fine,& Howard is an advertising agency.The firm uses an activity-based costing system to allocate overhead costs to its services.Information about the firm's activity cost pool rates follows:
Stooge Company was a client of Howard,Fine,& Howard.Recently,7 administrative assistant hours,3 new ad campaigns,and 8 meeting hours were incurred for the Stooge Company account.
Using the activity-based costing system,how much overhead cost would be allocated to the Stooge Company account?

Question

Howard,Fine,& Howard is an advertising agency.The firm uses an activity-based costing system to allocate overhead costs to its services.Information about the firm's activity cost pool rates follows: 
Stooge Company was a client of Howard,Fine,& Howard.Recently,7 administrative assistant hours,3 new ad campaigns,and 8 meeting hours were incurred for the Stooge Company account.
Using the activity-based costing system,how much overhead cost would be allocated to the Stooge Company account?

Quizplus · Accepted Answer

A)
Clerical $18 × 7 hours = 126.00
Filing $125 × 3 ad = 375.00
Meeting $52 × 8 = 416.00
Total 917.00

Howard,Fine,& Howard Is an Advertising Agency