Wake Construction Wake Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $200,000 in overhead costs. After implementing activity-based costing (ABC), the company's accountant identified the following related information:
The number of activities for standard and custom-made cabinets is as follows:
During the past year, Wake accepted a customer order for a set of custom-made cabinets that would require the following:
Refer to the Wake Construction information above. How much overhead should be applied to the above customer order?

Question

Wake Construction Wake Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $200,000 in overhead costs. After implementing activity-based costing (ABC), the company's accountant identified the following related information:
 The number of activities for standard and custom-made cabinets is as follows:
 During the past year, Wake accepted a customer order for a set of custom-made cabinets that would require the following:
 Refer to the Wake Construction information above. How much overhead should be applied to the above customer order?

Quizplus · Accepted Answer

The Answer of Wake Construction Wake Construction manufactures and installs standard and custom-made cabinetry for residential homes. Last year, the company incurred $200,000 in overhead costs. After implementing activity-based costing (ABC), the company's accountant identified the following related information:
 The number of activities for standard and custom-made cabinets is as follows:
 During the past year, Wake accepted a customer order for a set of custom-made cabinets that would require the following:
 Refer to the Wake Construction information above. How much overhead should be applied to the above customer order?

Wake Construction Wake Construction Manufactures and Installs Standard and Custom-Made