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Nile Corp
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming? year:
Cost Pool
Overhead Costs
Cost driver
Activity level
Supervision of direct labor
?$304,000
Direct labor−hours
?760,000
Machine maintenance
?$153,600
Machine−hours
?960,000
Facility rent
?$165,000
Square feet of area
?110,000
Total overhead costs
?$622,600
The accounting records show the Mossman Job consumed the following? resources:
Cost driver
Actual level
Direct labor−hours
260
Machine−hours
?1,500
Square feet of area
70
Using the three cost pools to allocate overhead? costs, what is the total amount of overhead costs to be allocated to the Mossman? Job?
A.
?$428.60
B.
?$10,071.67
C.
?$442.00
D.
?$449.00
Expert Solution
PFA
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