Zang Manufacturing Company manufactures two products (A and B). The overhead costs (£58,000) have been divided into three cost pools that use the following cost drivers: What is the amount of overhead cost to be assigned to Product A using labour hours as the cost driver ?

A) £58,000
B) £8,000
C) £9,600
D) £32,000

Question

Zang Manufacturing Company manufactures two products (A and B) . The overhead costs (£58,000) have been divided into three cost pools that use the following cost drivers: What is the amount of overhead cost to be assigned to Product A using labour hours as the cost driver ?

A) £58,000 
B) £8,000 
C) £9,600 
D) £32,000

Quizplus · Accepted Answer

The Answer is B

Zang Manufacturing Company Manufactures Two Products (A and B)