Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates the amount of overhead that should be assigned to the individual product lines. Budgeted inspection costs are $4,800. Additional information is as follows: Under a traditional costing system that assigns overhead on the basis of units inspected, the inspection costs allocated to one small pump would be
A) $10
B) $15
C) $20
D) $24

Question

Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates the amount of overhead that should be assigned to the individual product lines. Budgeted inspection costs are $4,800. Additional information is as follows:  Under a traditional costing system that assigns overhead on the basis of units inspected, the inspection costs allocated to one small pump would be
A) $10 
B) $15 
C) $20 
D) $24

Quizplus · Accepted Answer

The Answer of Wells Corporation is preparing its annual budget. As part of its analysis of the contribution of individual products to overall profitability, the controller estimates the amount of overhead that should be assigned to the individual product lines. Budgeted inspection costs are $4,800. Additional information is as follows:  Under a traditional costing system that assigns overhead on the basis of units inspected, the inspection costs allocated to one small pump would be
A) $10 
B) $15 
C) $20 
D) $24

Wells Corporation Is Preparing Its Annual Budget